Chapter 01 “Foundations of Information Systems in Business” MIS Test-Bank

True / False Questions

(F) 1. Having a basic understanding of information systems is good, but not nearly as important as understanding other
functional business areas.
(T) 2. Smoke signals and library card catalogs are examples of an information system.
(T) 3. Information technology can help all kinds of businesses improve the efficiency and effectiveness of their business
processes and managerial decision making.
(F) 4. The term "information technology" refers to all of the components and resources necessary to deliver the
information and functions of a system to an organization.
(T) 5. Decision support systems (DSS) provide managerial end users with ad hoc and interactive support of their
decision-making processes.
(T) 6. Expert systems can serve as consultants to users by providing expert advice in limited subject areas.
(F) 7. Enterprise collaboration systems involve the use of software tools to support e-commerce functions with
customers and suppliers.
(F) 8. A process control system is an example of an operation support system that records and processes data resulting
from business transactions.
(T) 9. Management information systems (MIS) provide information in the form of reports and displays.
(T) 10. Maintenance is one of the key activities in the development and management of a business information system.
(T) 11. Anyone who uses an information system or the information it produces can be referred to as an end user.
(T) 12. Most end users in business are referred to as knowledge workers, people who spend most of their time
communicating, collaborating, and creating, using, and distributing information.
(F) 13. Optical disks and plastic cards are examples of hardware resources, but paper forms are not.
(F) 14. In information systems activities, the processing of data resources typically takes the form of data entry activities.
(F) 15. In the context of the information systems model, information is subjected to a "value-added" process that
converts it to data that meet the needs of end users.
(T) 16. In real-time processing, data are processed immediately after a transaction occurs.
(F) 17. Information systems that focus on operational and managerial applications in support of basic business
functions, such as accounting, are known as strategic information systems.
(T) 18. An information system that supports accounting is an example of a functional business system.
(F) 19. Multiple systems never share an environment; each has its own.
(T) 20. Information systems are just like any other system, but their value to the modern organization is unlike any other
system ever created
(F) 21. In the context of the information systems model, data resources are typically organized as databases and expert
systems.
(T) 22. Data are raw facts or observations, typically about physical phenomena or business transactions.
(T) 23. Information technology can help all kinds of businesses improve the efficiency and effectiveness of their
business processes and managerial decision making.
Multiple Choice Questions
(b.) 1. In the information systems concept, the processing function involves:
a. Capturing and assembling elements that enter the system to be processed
b. Transformation processes that convert input into output
c. Transferring elements that have been produced by a transformation process to their ultimate destination
d. Monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal
(d.) 2. Which of the following is a false statement?
a. Today's information systems are doing the same basic things that they did over 40 years ago.
b. Today there is a much higher level of integration of system functions.
c. Today there is greater connectivity across dissimilar system components.
d. None of the statements is false.
(c.) 3. Companies generally rely on e-business applications to do all of the following except:
a. Re-engineer internal business processes
b. Implement electronic commerce systems
c. Monitor employee productivity
d. Promote enterprise collaboration among business teams and workgroups
(a.) 4. In an e-business enterprise, an intranet refers to:
a. An Internet-like network inside the enterprise
b. A network between an enterprise and its trading partners
c. A network between the members of a single workgroup
d. All the choices are correct.
(d.) 5. The text classifies information systems as either operations or management support information systems. Which
one of the following would not be classified as an operations support system?
a. Transaction processing system b. Process control systems
1|P a g e Test Bank
 Chapter 01 “Foundations of Information Systems in Business” MIS Test-Bank
c. Enterprise collaboration systems d. Decision support systems
(a.) 6. Process control systems monitor and control _______________ processes.
a. physical b. transactional c. inter-departmental d. mechanical
(c.) 7. When employees in a project team use email to send and receive messages and use video conferences to hold
electronic meetings and coordinate their activities, they are using _______________.
a. transaction processing systems b. process control systems
c. enterprise collaboration systems d. decision support systems
(b.) 8. A database of customer purchases that provides end-user managers with interactive and ad hoc decision-making
support is referred to as _______________.
a. a transaction processing system b. a decision support system
c. an information reporting system d. an executive information system
(d.) 9. A production manager needs a system to help determine how much product to manufacture based on the expected
sales associated with a future promotion, plus the location and availability of the raw materials necessary to
manufacture the product. What type of system would meet this manager's needs?
a. Transaction processing system b. Process control system
c. Enterprise collaboration system d. Decision support system
(b.) 10. When information system applications focus on providing information and support for effective decision making
by managers, they are called _______________ support systems.
a. decision b. management c. collaboration d. process
(d.) 11. Which of the following systems acts as a consultant to users?
a. Knowledge b. Integrated information c. Executive information d. Expert
(d.) 12. How do information systems aid in decision making?
a. Information systems help companies determine investments.
b. Information systems help companies determine which products to sell or discontinue.
c. Information systems can be used to gain competitive advantage.
d. All of the choices are correct.
(a.) 13. In its simplest form, a system consists of all the following except:
a. A group of cooperative users b. A set of interrelated components
c. A clearly defined boundary d. A common set of objectives
(a.) 14. An information system that supports the business functions of accounting, finance, human resource management,
marketing, or operations would be classified as a (n) _______________ system.
a. functional business b. executive information
c. management information d. decision support
(b.) 15. A functional business system supports all of the following types of applications except:
a. Accounting b. Customer problem resolution c. Marketing d. Human resource management
(c.) 16. Developing an information system solution involves all of the following steps except:
a. Investigation b. Implementation c. Redesign d. Maintenance
(d.) 17. Developing information system solutions to business problems in an organization is the responsibility of
_______________.
a. information system specialists b. computer programmers
c. systems analysts d. all information system users within the organization
(d.) 18. An information system depends on all of the following resources except:
a. Hardware b. Software c. People d. Time
(d.) 19. All of the following would be considered a hardware resource except:
a. A microcomputer b. A keyboard c. Magnetic and optical disks d. Programs and procedures
(d.) 20. Telecommunications networks consist of _______________.
a. computers, the Internet, intranets, and extranets
b. communications processors
c. devices interconnected by communication media and controlled by communications software
d. All of the choices are correct.
(a.) 21. All of the following normally happens to data during a value-added process except:
a. Their useful life is determined
b. Their form is aggregated, manipulated, and organized
c. Their content is analyzed and evaluated
d. They are placed in a proper context for a human user
(a.) 22. All of the following are considered computer hardware technology except:
a. Operating system software b. Microcomputers c. Keyboards d. Printers
Fill in the Blank Questions
1. An _______________ system is an organized combination of people, hardware, software, telecommunications
networks, and data resources that collects, transforms, and disseminates information in an organization.
2|P a g e Test Bank
Chapter 01 “Foundations of Information Systems in Business” MIS Test-Bank
2. _______________ is defined as the use of Internet technologies to work and empower business processes, electronic
commerce, and enterprise collaboration within a company and with its customers, suppliers, and other business
stakeholders.
3. Enterprise collaboration systems use software tools to support _______________ among the members of networked
teams and workgroups.
4. Electronic _______________ is the buying, selling, marketing, and servicing of products, services, and information
over a variety of computer networks.
5. Types of information systems are generally classified as either operations information systems or _______________
information systems.
6. A system that provides pre-specified reports for the managers of an organization would be classified as a
_______________ system.
7. Enterprise collaboration systems enhance team and workgroup communication and productivity, and include
applications that are sometimes called office _______________ systems.
8. The success of an information system should be measured by both its efficiency and its _______________.
9. People, hardware, software, __________, and networks are the five basic resources of information systems.
10. A manufacturing system accepts raw materials as input and produces finished goods as output. An information system
accepts data as input and processes them into _______________ as output.
11. ____________ is data about the performance of a system.
12. _______________ involves monitoring and evaluating feedback to determine whether a system is moving toward the
achievement of its goal.
13. Information in various forms is transmitted to end users and made available to them in the _______________ activity.
14. Marketing and selling books to consumers over the Internet is an example of _______________ commerce.
15. A system that controls the industrial processes of an organization would be classified as a (n) _________ support
system.
16. The goal of knowledge management systems (KMS) is to help knowledge workers create, organize, and
_______important business knowledge wherever and whenever it is needed.
17. Information processing consists of the system activities of input, processing, output, _______________, and control
18. A _______________ document is the original, formal record of a transaction.
Solutions:
1. Information 6. Management 11. Feedback 16. Share
2. E-Business 7. Automation 12. Control 17. Storage
3. Communication, Co-ordination, Collaboration 8. Effective 13. Output 18. Source
4. Electronic Commerce 9. Data 14. Electronic-Commerce
5. Management 10. Information 15. Operation
Short notes:
1- What are the five areas of information system?
❖ Foundation Concepts – fundamental behavioral, technical, business, and managerial concepts about information system
❖ Information Technologies – major concepts, developments, and management issues in IT
❖ Business Applications – major uses of IS for operations, management, and competitive advantage
❖ Development Process – how an IS is planned, developed, and implemented to meet business opportunities
❖ Management Challenges – effectively and ethically managing IT at the end-user, enterprise, and global levels of a business
2- What are the two types of information system?
❖ Operation Support Systems – help run the daily business, but do not provide much information for managerial
decision-making
 Transaction Processing Systems – record & process daily transactions
 Process Control Systems - monitor and control physical processes
 Enterprise Collaboration Systems (Office Automation Systems) – enhance
team and workgroup communications and productivity
❖ Management Support Systems
 Management Information Systems–reports and displays for managers to help them make better business decisions
 Decision Support Systems–direct computer support for decision-making
 Executive Information Systems–critical information specifically for executives to make better decisions;
not just a better MIS
3- What are the processes or (steps) of developing information system solution?
Developing IS Solutions – an Information Systems is a Solution to a Business Problem
❖ Investigate (Plan) – recognize the problem exists
❖ Analyze – investigate the current system
❖ Design – designing the new system
❖ Implement – put the new system into effect
❖ Maintain (Use) – use, monitor, and maintain the new system

3|P a g e Test Bank

Chapter 02 “Competing with Information Technology” MIS Test-Bank
True / False Questions
(T) 1. When an organization uses information technology to develop products, services and capabilities in order to gain a strategic
advantage over competitive forces in the global marketplace, it is using information systems in a strategic role.
(F) 2. Competition is a negative characteristic in business that can require significant resources to overcome.
(T) 3. Most products and services have some sort of substitute available to the consumer.
(T) 4. In the Internet world, a firm's biggest competitor may be one that is not yet in the marketplace but could emerge
almost overnight.
(F) 5. The threat of new entrants is often at its strongest during periods of rising costs or inflation
(F) 6. An innovation strategy may allow a firm to focus its products or services and gain an advantage in a particular
segment or niche of a market.
(F) 7. When a firm develops ways to differentiate its products from a competitor's, it is pursuing a cost leadership strategy.
(F) 8. When a firm uses IT to create virtual organizations of business partners, it is pursuing a growth strategy
(T) 9. A given activity can fall into one or more of the categories of competitive strategy.
(T) 10. When a firm makes such radical changes to its business processes for producing products and services that it
alters the fundamental structure of an industry, it is pursuing an innovation strategy.
(T) 11. Investments in information technology can allow a business to lock in customers and suppliers, and lock out
competitors, by building valuable new relationships with them.
(T) 12. A strategic use of information technology would be to leverage investment in information system specialists,
hardware, software, databases, and networks from operational uses into strategic applications.
(T) 13. Internet technologies can make customers the focal point of customer relationship management (CRM) and
other e-business applications.
(T) 14. According to the value chain concept, primary processes include such things as the procurement of resources
and human resource management that are directly related to the manufacturing of products or delivery of
services to the customer.
(T) 15. The value chain framework can be used to view a firm as a series, a chain, or a network of basic activities that
add value to its products and services, and thus add a margin of value to the firm.19
(T) 16. The value chain concept can help managers decide where and how to apply the strategic capabilities of
information technology.
(F) 17. Business process reengineering (BPR) is most often called streamlining.
(T) 18. Becoming an agile company depends on customer perceptions of products and services, as much as any other strategy.
(T) 19. An agile company cooperates with its suppliers and competitors.
(T) 20. Successful knowledge management creates techniques, technologies, and rewards for getting employees to
share what they know and to make better use of accumulated workplace knowledge.
Multiple Choice Questions
(d.) 1. A strategic information system can be any kind of information system that uses information technology to help an
organization _______________.
a. gain a competitive advantage b. reduce a competitive disadvantage
c. meets strategic enterprise objectives d. all of the choices are correct.
(c.) 2. A firm can survive and succeed in the long run if it successfully develops strategies to confront the
_______________ that shape the structure of competition in its industry.
a. technological innovations b. competitive business processes
c. competitive forces d. competitive strategies
(a.) 3. A(n) _______________ strategy is a competitive strategy by which a firm seeks to become a low-cost producer of
products and services in the industry.
a. cost leadership b. differentiation c. innovation d. alliance
(c.) 4. A(n) _______________ strategy is a competitive strategy by which a firm develops ways to differentiate its
products and services from those of its competitors.
a. low cost leadership b. innovation c. differentiation d. growth
(d.) 5. A(n) _______________ strategy is a competitive strategy by which a firm develops unique products or services from
those of its competitors, or makes radical business changes that may alter the fundamental nature of the industry.
a. alliance b. growth c. differentiation d. innovation
(b.) 6. A(n) _______________ strategy is a competitive strategy by which a firm significantly expands its capacity to
produce goods and services, expanding and diversifying in the market.
a. alliance b. growth c. differentiation d. innovation
(d.) 7. A(n) _______________ strategy is a competitive strategy by which a firm establishes new business linkages with
customers, suppliers, competitors, and other companies.
a. growth b. low cost leadership c. differentiation d. alliance
(a.) 8. According to the text, competition is a _______________ characteristic in business that _______________.
a. positive, is natural and healthy b. negative, can consume significant resources
c. neutral can help a firm meet strategic enterprise objectives d. none of the choices are correct.
4|P a g e Test Bank
 Chapter 02 “Competing with Information Technology” MIS Test-Bank
(b.) 9. According to the text, the Internet:
a. Has limited competition world-wide
b. Has created many ways to enter the market quickly, with relatively low cost
c. Has created new entry barriers to competition
d. Has decreased prices world-wide
(b.) 10. Which of the following is a competitive strategy?
a. New entries into the market b. Innovation c. Bargaining power d. Substitutes
(a.) 11. All the following are competitive strategies except:
a. New entries into the market b. Innovation c. Cost leadership d. Alliances
(d.) 12. All of the following can be used to counter competitive forces in the marketplace:
a. Alliances b. Growth c. Innovation d. Bargaining
(c.) 13. According to the text, in the world of the Internet, a firm's biggest competitor:
a. Usually exists and is close in the physical world
b. Usually does not exist but will emerge close in the physical world
c. May not yet exist but could emerge almost overnight
d. Probably exists in an overseas location
(b.) 14. Which of the following is a competitive force in the marketplace?
a. Cost leadership b. Competition c. Differentiation d. Alliances
(a.) 15. Becoming a low-cost producer of products and services in an industry is an example of a(n):
a. Cost leadership strategy b. Differentiation strategy c. Innovation strategy d. Growth strategy
(d.) 16. All of the following are basic competitive strategies discussed in the text except:
a. Cost leadership b. Innovation c. Product differentiation d. Strategic dominance
(c.) 17. When customers become dependent on mutually beneficial inter-enterprise information systems, they become
reluctant to switch to a company's competitors because they would incur all following costs except:
a. Time b. Money c. Innovation d. Effort
(d.) 18. A company that places a strategic focus on customer value recognizes that __________, rather than __________,
has become a primary determinant in a customer's perception of value.
a. service, price b. price, quality c. quality, service d. quality, price
(d.) 19. A customer-focused business can build customer value and loyalty by:
a. Making a loyal customer feel special with website personalization
b. Letting customers place orders directly, or through distribution partners
c. Letting customers check order history and delivery status
d. All of the choices are correct.
(b.) 20. Which of the following is a primary business process?
a. Collaborative workflow intranet b. Targeted marketing
c. Technology development d. Procurement of resources
Fill in the Blank Questions
1. A firm can survive and succeed in the long run if it successfully develops strategies to confront the five
_______________ forces that shape the structure of competition in its industry.
2. The competitive threat of _______________ is often at its strongest during periods of rising costs or inflation.
3. A _______________ strategy is a competitive strategy by which a firm seeks to become a low-cost producer of products
and services in the industry.
4. When using a(n) _______________ strategy, a firm seeks to find new ways of producing or distributing its products and
services that are so different from the way business has been conducted that they may alter the fundamental structure
of the industry.
5. In the _______________ concept, some business activities are primary processes while others are support processes.
6. According to the value chain concept, _______________ processes within the organization would include human
resources management and technology development.
7. _______________ is defined as the restructuring and transforming of a business process by a fundamental rethinking
and radical redesign to achieve improvements in costs, quality, speed, and service.
8. When an organization uses information technology to develop products, services and capabilities in order to gain a
strategic advantage over competitive forces in the global marketplace, it is using information systems in a
_______________ role.
9. A(n) _______________ company can make a profit in markets with broad product ranges and short model lifetimes, and
it can produce orders individually and in arbitrary lot sizes.
A _______________ company can be defined as an organization that uses telecommunications networks and other
information technology to link people, assets, and ideas.
Solutions: 1. Competitive 4. Innovation 7. Re-engineering
2. Substitute 5. Value Chain 8. Strategic 10. Virtual
3. Cost-leadership 6. Support 9. Agent
5|P a g e Test Bank
Chapter 03 “Computer Hardware” MIS Test-Bank
True / False Questions
(F) 1. All computers are systems of input, processing, output, storage, and distribution components.
(T) 2. Personal computers, network servers, and technical workstations are terms used to highlight major uses of particular
types of computers.
(F) 3. Network servers are the most important category of computer systems for both business people and individual
consumers.
(T) 4. The computing power of microcomputers currently exceeds that of the mainframe computer of previous generations,
at a fraction of the cost.
(T) 5. Some microcomputers are powerful enough to support applications with heavy mathematical computing and graphics
display demands, such as computer-aided design (CAD) or investment analysis
(F) 6. Network servers are some of the less powerful microcomputers; they are used to coordinate telecommunications and
resource sharing in small LANs and in Internet and intranet websites
(T) 7. Today's corporate buyers seek networked PCs equipped with reliable wireless capabilities
(T) 8. Web-enabled personal digital assistants use touch screens, pen-based handwriting recognition, or keyboards, so
mobile workers can send and receive e-mail, access the Web, and exchange information with their desktop PCs or
Web servers.
(F) 9. The function of an input device is to interpret computer program instructions and to transmit directions to the other
components of the computer system.
(T) 10. The central processing unit (CPU) is the main processing component of a computer system.
(F) 11. The output devices of a computer system can include video display units, scanners, and printers
(T) 12. The control unit of the CPU interprets instructions and directs processing.
(T) 13. Peripherals depend on direct connections or telecommunications links to the central processing unit of a computer
system.
(T) 14. Pen-based computing technologies are being used in many hand-held computers and personal digital assistants.
(T) 15. Optical scanning enables the direct entry of data from source documents into a computer system.
(T) 16. OCR technology is used to read codes on merchandise tags, product labels, credit card receipts, and other documents
(T) 17. Digital cameras and digital video cameras enable users to shoot, store, and download still photos or full-motion
video and audio onto their PCs.
(F) 18. High speed storage media cost less per byte and provide higher capacities than lower-speed storage media.
(T) 19. A byte typically consists of ten bits and represents one character of data in most computer coding schemes.
(T) 20. The terms direct access and random access describe the same concept.
(F) 21. ROM chips are widely used as a primary storage medium because they can be erased and overwritten.
(T) 22. It is predicted that in the future we will be able to back up our biological memories
Multiple Choice Questions
(b.) 1. Which of the following is a primary business process?
a. Input b. Internet c. Processing d. storage
(c.) 2. - The first generation of computers relied on _______________.
a. miniaturized circuits b. transistors c. vacuum tubes d. punch cards
(b.) 3. The second generation of computers relied on _______________.
a. miniaturized circuits b. transistors c. vacuum tubes d. punch cards
(b.) 4. The first electronic digital computer was completed in the
a. 1870s b. 1940s c. 1950s d. 1960s
(a.) 5. ___________ are the most important category of computer systems for both business people and individual consumers.
a. Microcomputers b. Supercomputers c. Network Servers d. Mainframes
(a.) 6. According to the text, which of the following is considered by millions of computer users to be the primary function of
the desktop PC?
a. Allows access to the Internet b. Increases productivity through the use of software applications
c. Facilitates creation of local area networks d. All of the choices are correct
(c.) 7. -__________ are some of the more powerful microcomputers; they are used to coordinate telecommunications and
resource sharing in small LANs and in Internet and intranet websites.
a. Mainframes b. Supercomputers c. Network Servers d. None of the choices are correct.
(a.) 8. An intelligent terminal that can perform data entry and some information processing tasks independently is called a
_______________ terminal.
a. transaction b. dumb c. Windows d. Remote
(a.) 9. Which of the following does not apply to a personal digital assistant (PDA)?
a. Supports applications with heavy mathematical computing b. Touchscreens
c. Pen-based handwriting recognition d. Web access
(a.) 10. Personal digital assistants most commonly use which of these technologies?
a. Pen-based computing b. Optical scanning c. Jump drives d. Back-lit keyboards
(a.) 11. _______________ are high-end network servers that handle large-scale processing of business applications.
a. Midrange computers b. Mainframes c. Supercomputers d. All of the choices are correct

6|P a g e Test Bank

Chapter 03 “Computer Hardware” MIS Test-Bank
(b.) 12. -_______________ are popular as powerful network servers to help manage large Internet Websites, intranets, and
extranets.
a. Workstations b. Minicomputers c. Supercomputers d. Mainframes
(d.) 13. Which of the following is a common application for a midrange computer?
a. Internet functions. b. Integrated enterprise-wide manufacturing and distribution.
c. Financial applications d. All of the choices are correct
(c.) 14. Which of the following would not be considered a characteristic of supercomputer systems?
a. Costs between $5 million and $50 million. b. Used for global weather reports and military defense.
c. Runs the same software found on most home computers, d. Designed specifically for high-speed numeric computation
but at faster speeds
(c.) 15. The function of an input device is:
a. to interpret computer program instructions b. to transmit directions to other components of the computer system
c. to convert data into electronic form for entry into a computer system d. none of the above
(a.) 16. The central processing unit (CPU):
a. is the main processing component of a computer system b. controls all the peripheral devices of a computer system
c. is controlled by the RAID unit d. is also called a Fuzzy Logic unit
(b.) 17. Which of the following would perform the required mathematical and logic operations of a central processing unit (CPU)?
a. Control unit b. Arithmetic-logic unit c. RAID unit d. Fuzzy logic unit
(c.) 18. The function of an output device is to:
a. Convert data into an electronic machine-readable form for direct entry into a computer system
b. Perform the arithmetic and logic functions required in computer processing
c. Convert electronic information produced by the computer system into human-intelligible form for presentation to end-users
d. Store the data and program instructions needed for processing
(c.) 19. The primary storage (main memory) of a computer is also called:
a. ROM b. RAID c. RAM d. None of the choices are correct
(a.) 20. A bit, the smallest element of data, can have values of:
a. 0 or 1 b. 0, 1, or 8 c. 0 through 7 d. 0 through 8
Fill in the Blank Questions
1. A computer that uses vacuum tube technology is called a __________-generation computer
2. In the 1950s, _______________ replaced the vacuum tubes used in electronic computers
3. _____________are the most important category of computer systems for both business people and individual consumers.
4. A(n) _______________ server is a powerful microcomputer that is used to coordinate telecommunications and resource
sharing in small local area networks (LANs) and Internet and intranet web sites.
5. ___________ systems include high-end network servers that handle large-scale processing of many business applications.
Solutions: 1. First 2. Transistor 3. Microcomputer 4. Network services 5. Midrange

7|P a g e Test Bank

Chapter 05 “Data Resource Management” MIS Test-Bank l
True / False Questions
(F) 1. A master file is an integrated collection of logically related data elements P.190
(T) 2. Files are frequently classified by the application for which they are primarily used, such as a payroll file or an inventory file. P.190
(T) 3. Database management packages based on the relational model can link data elements from various tables to provide
information to users P.192 – 193
(T) 4. Databases contain data elements that describe both entities and the relationships among entities P.190
(F) 5. Multidimensional databases have become the least popular structure for analytical databases that support online analytical
process (OLAP) applications, in which fast answers to complex queries are expected P.194
(F) 6. The multidimensional database structure is considered one of the key technologies of a new generation of Web-based
applications P.194
(T) 7. A database with a network data structure can easily handle a many-to-many data relationship, whereas a hierarchical model
cannot. P.191
(F) 8. The network model can easily handle ad hoc requests for information, whereas the hierarchical model cannot. P.196
(F) 9. All of the relationships between the data elements in a relationally organized database need to be specified when the
database is created. P.192
(F) 10. Relational databases are more difficult for programmers to work with and more difficult to maintain than the hierarchical
and network models. P.193
(T) 11. Large organizations usually place control of enterprise-wide database development in the hands of database
administrators (DBAs) and other database specialists. P.197
(T) 12. An active data dictionary will prevent a data entry program from using a nonstandard definition of a customer record. P.197
(T) 13. A large database system is often distributed into smaller databases based on some logical relationship between the data
and the location of the databases. P.197
Multiple Choice Questions
(a.) 1. From a logical point of view, a(n) _______________ is the smallest data element that can be observed and manipulated. P.186
a. character b. bit c. attribute d. byte
(d.) 2. A record represents a collection of _______________ that describe an entity. P.189
a. characters b. fields c. files d. attributes
(b.) 3. All the fields used to describe the attributes of an entity are grouped to form a(n) _______________. P.189
a. field b. record c. file d. database
(a.) 4. The tables in a relational database are flat files which have rows and columns. Each column represents a _______ in the
file. P.193
a. field b. record c. file d. relation
(a.) 5. Using a relational database, a user can temporarily combine two or more tables so that he/she can see relevant data in a
form that looks like it is in one big table. This is the _______________ operation. P.193
a. join b. link c. merges d. select
(d.) 6. _______________ databases have become the most popular structure for analytical databases that support online
analytical process (OLAP) applications, in which fast answers to complex queries are expected. P.194
a. Relational b. Object-oriented c. Inter-relational d. Multidimensional
(c.) 7. The _______________ database structure is considered one of the key technologies of a new generation of Web-based
applications. P.194
a. hierarchical b. relational c. object-oriented d. multidimensional
(d.) 8. Object technology allows designers to do all of the following except: P.195
a. Develop product designs b. Replicate product designs and then modify them to create new product designs
c. Save designs as objects in an object-oriented database d. Substantially reduce the file size of designs
(c.) 9. A database with a (n) _______________ data structure can easily handle ad hoc requests for information. P.193
a. hierarchical b. network c. relational d. object-oriented
(a.) 10. Large organizations usually place control of enterprise-wide database development in the hands of _______________. P.197
a. Database administrators (DBAs) b. Automated CASE tools c. End users d. All of the choices are correct
Fill in the Blank Questions
1. All of the fields used to describe the attributes of an entity are grouped to form a____________. P.189
2. A group of related records is a data file, or a ___________. P.189
3. A _________ is an integrated collection of logically related data elements. P.190
4. Databases contain data elements that describe both entities and the ___________ among entities. P.190
5. The tables in a relational database are flat files, which have rows and columns. Each row presents a single ______ in the file.
6. The ________ operation is used to create a subset of the columns contained in the temporary tables created by the select
and join operations. P.193
7. A weakness in the hierarchical model is that it cannot handle _many-to-many__ data relationships. P.191
8. A weakness in the network model is that it cannot handle ___ad hoc request____ for information P.196
9. A database of data definitions and specifications is called a metadata repository, or a ___data dictionary_____. P.197
10. An _____ consists of data values describing the attributes of an entity, plus the operations that can be performed upon the data.
Solutions: 1. record 2. Table 3. database 4. relationship 5. record P.193
6. project 7. many-to-many 8. Ad hoc request 9. Data dictionary 10. object P.194
8|P a g e Ahmed Fathy i
Chapter 06 “Telecommunications and Networks” MIS Test-Bank l
True / False Questions
(F) 1. The telecommunications industry has changed from a deregulated market to government-regulated monopolies. P.234
(F) 2. Middleware is an essential component of any IT infrastructure because it allows disparate systems to be isolated. P.236
(T) 3. Business-to-business electronic commerce websites can be used by businesses to establish strategic relationships with their
customers and suppliers.
(F) 4. The Internet has a central computer system that is the most powerful in the world.
(F) 5. Booking a reservation over the Internet costs an airline about 50 percent less than booking the same reservation over the telephone.
(T) 6. An intranet is a network inside an organization that uses Internet technologies to provide an Internet-like environment
within the enterprise. P.243
(F) 7. Intranets seldom have much impact on communications and collaboration within an enterprise. P.244
(T) 8. Software that is installed on intranet Web servers can be accessed by employees within the company or by external
business partners who are using Web browsers, if access is allowed by the company. P.244
(T) 9. If access to data is not restricted with passwords and other security mechanisms, the integrity of the data can be easily
compromised. P.244
10. An extranet is a network inside a company that uses Internet technologies to provide a private Internet-like network
(F) environment to the firm. P.243
(T) 11. Web browser technology makes customer and supplier access of intranet resources a lot easier and faster than with
previous business methods. P.246
(T) 12. A client/server network of several interconnected local area networks can replace a large mainframe-based network with
many end user terminals. P.253
(F) 13. The network-centric concept views the PC as the central computing resource of any computing environment. P.254
(T) 14. In the central server architecture of P2P networking, the P2P software connects your PC to a central server with the
directory of all users of the network. P.254
(T) 15. In the pure peer-to-peer architecture of P2P networking, the P2P software connects your PC to a central server with the
directory of all users of the network. P.254
(T) 16. Output from analog devices must be converted into digital form in order to input it into a computer. P.256
(F) 17. Today, ordinary telephone wire is the least used medium for telecommunications. P.257
(T) 18. Communications satellites can use microwave radio as their telecommunications medium. P.259
(T) 19. A Bluetooth chip is designed to replace cables; it takes the information normally carried by a cable and transmits it to a
receiver Bluetooth chip. P.261
(F) 20. Multiplexers work to increase the number of transmissions possible, while also increasing the number of physical data channels.
P.264
(T) 21. The Open System Interconnection (OSI) model was officially adapted as an international standard by the International
Organization of Standards (ISO). P.267
(T) 22. The Internet uses a system of telecommunications protocols that have become so widely used that they are now accepted
as network architecture. P.267
(T) 23. Voice over IP is a technology that allows a remote worker to function as if he or she were directly connected to a regular
telephone network, even while at home or in a remote office. P.270
(F) 24. Bandwidth" is typically measured in characters per second (CPS). P.272
(F) 25. The Internet is owned by the government of the United States.
Multiple Choice Questions
(b.) 1. Which of the following statements best defines a network? P.231
a. The usefulness or utility that comes from linking computers together b. An interrelated or interconnected chain, group, or system
c. Computers linked together via cabling or wireless technology d. A group of individuals linked via hardware and software
(c.) 2. The telecommunications industry has changed __________. P.234
a. from a deregulated market to government-regulated monopolies. b. not at all since 1900.
c. from government-regulated monopolies to a deregulated market. d. none of the above.
(d.) 3. Open systems are a recent telecommunications trend. Open systems: P.235
a. Use common standards for hardware, software, applications, and networking
b. Create a computing environment that is easily accessed by end users and their networked computer systems
c. Provide greater connectivity, and a high degree of network interoperability
d. All of the choices are correct.
(c.) 4. Programming that serves to "glue together" or mediate between two separate, and usually already existing, programs is
known as ___________.
a. front-line software b. software handshaking c. middleware d. back-line software
(d.) 5. Telecommunications networks now play vital and pervasive roles in Web-enabled _______. P.236
a. e-business processes b. electronic commerce c. enterprise collaboration d. All of the choices are correct.
(c.) 6. Which of the following statements regarding Internet2 is true? P.237
a. Internet2, like the first Internet, is open to all users
b. Internet2 uses the same infrastructure as the current Internet, so it will be easy to learn
c. The purpose of Internet2 is to build a roadmap that can be followed during the next stage of innovation for the current Internet
d. Internet2 will someday replace the original Internet

9|P a g e Test Banki

Chapter 06 “Telecommunications and Networks” MIS Test-Bank l
(d.) 7. Traveling salespeople and those at regional sales offices can use the Internet, extranets, and other networks to transmit
customer orders from their laptop or desktop PCs, thus breaking _______________ barriers. P.237
a. physical b. competition c. structural d. geographic
(c.) 8. Telecommunications-based business applications can help a company overcome all of the following barriers to business
success except: P.237
a. Time barriers b. Geographic barriers c. Human resource barriers d. Cost barriers
(b.) 9. All of the following statements about the Internet revolution are true except: P.238
a. The Internet has become the largest and most important network today, and has evolved into a global information
superhighway
b. The central computer system of the Internet is the most powerful communications center in the world
c. The Internet is constantly expanding, as more and more businesses and other organizations join its global web
d. The Internet does not have a headquarters or governing body
(b.) 10. Most companies are building e-business and e-commerce websites to achieve all of the following goals except: P.242
a. Generate new revenue from online sales b. Increase foot traffic at brick and mortar locations
c. Reduce transaction costs d. Increase the loyalty of existing customers via Web customer service and support
(c.) 11. An _______________ is a network inside an organization that uses Internet technologies to provide an Internet-like
environment within the enterprise. P.243
a. extranet b. omninet c. intranet d. none of the above
(a.) 12. An _______________ is a network link that uses Internet technologies to interconnect the intranet of a business with the
intranets of its customers, suppliers, or other business partners. P.245
a. extranet b. omninet c. intranet d. none of the above
(a.) 13. The use of an intranet in an organization ___________. P.243
a. can significantly improve communications and collaboration within an enterprise.
b. can significantly hinder communications and collaboration within an enterprise.
c. has no effect communications and collaboration within an enterprise.
d. is only possible if the organization is using WiFi.
(d.) 14. All of the following would typically be supported by an organization's intranet information portal except: P.243
a. Communication and collaboration b. Business operations and management c. Web publishing d. Recruitment
(a.) 15. Based on the information presented in the text, telecommunications terminals are best described as: P.249
a. Any input/output device that uses telecommunications networks to transmit or receive data, including telephones
b. Devices that support data transmission and reception between terminals and computers
c. Channels over which data are transmitted and received
d. Programs that control telecommunications activities and manage the functions of telecommunications networks
(a.) 16. The text lists five basic categories of components in a telecommunications network. One of these categories includes
telecommunications processors, which: P.249
a. Support data transmission and reception between terminals and computers
b. Are channels over which data are transmitted and received
c. Consist of programs that control telecommunications activities and manage the functions of telecommunications networks
d. Include input/output terminals
(b.) 17. The five basic categories of components in a telecommunications network include: P.249
a. Protocols, telecommunications channels, computers, telecommunications control software, and modems
b. Terminals, telecommunications processors, telecommunications channels, computers, and telecommunications control software
c. Terminals, telecommunications channels, computers, and modems
d. Terminals, telecommunications processors, computers, modems, and protocols
(d.) 18. A network that covers a large geographic distance, such as a state or a country, is considered a ___________ network. P.249
a. client/server b. local area c. small area d. wide area
(b.) 19. Which of the following best describes a local area network? P.250
a. A network that covers a large geographic area, such as a city or state
b. A network that connects computers within a limited physical area, such as inside a single building
c. A network that covers no more than a single state
d. A private network that uses the Internet as its main backbone
(b.) 20. An internetworking unit that connects networks based on different protocols is a _________.
a. bridge b. router c. gateway d. hub
(c.) 21. A(n) _______________ is a standard set of rules and procedures for the control of communication in a network. P.267
a. amplification b. algorithm c. protocols d. transponders
Fill in the Blank Questions
1. We can think of the ________ as a network made up of millions of smaller, private networks, each with the ability to operate
independent of, or in harmony with, all the other millions of connected networks
2. The terms analog and _____________ refer to the methods used to convert information into an electrical signal so that it can be
transmitted or processed
3. Smart telephones, pagers, PDAs, and other portable communications devices have become very thin clients in ______ networks
4. _____modems____ are the most common type of communications processor.
Solutions: 1. internet 2. digital 3. wireless 4. modems
10|P a g e Test Banki
Chapter 08 “Business across the Enterprise” MIS Test-Bankl
True / False Questions
(F) 1. CRM systems store customer account data in multiple specialized databases and then make it available throughout a
company via Internet, intranet, or other network links.
(F) 2. CRM gives sales representatives lagged, but recent, access to a customer's account status and history before scheduling
sales calls
(F) 3. It costs twice as much to sell to a new customer than it does to sell to an existing one.
(T) 4. A company can boost its profits 85 percent by increasing its annual customer retention by only 5 percent.
(T) 5. The majority of complaining customers will do business with a company again if it quickly takes care of the problem.
(F) 6. CRM can keep track of when a customer contacts a company, if the customer uses a previous contact point.
(F) 7. The three steps in the customer life cycle are acquired, balance, and retain.13
(T) 8. CRM software is difficult to install because it often touches many different legacy systems.
(T) 9. ERP systems support many vital human resource processes, from personnel requirements planning to salary and benefits
administration.
(F) 10. ERP software suites typically consist of integrated modules of manufacturing, distribution, sales, inventory, and human
resource applications.
(T) 11. The growth of the Internet and corporate intranets and extranets prompted software companies to build Web interfaces
and networking capabilities into ERP systems.
(T) 12. Four important trends are shaping the continuing evolution of ERP: improvements in integration and flexibility,
extensions to e-business applications, a broader reach to new users, and the adoption of Internet technologies.
(T) 13. According to the textbook case, fragmented internal systems are highly unusual in a company that experiences rapid
growth.
(T) 14. Many companies today are turning to Internet technologies to Web-enable their supply chain processes, decision making,
and information flows.
(T) 15. EDI automatically tracks inventory changes; triggers orders, invoices, and other documents related to transactions; and
schedules and confirm delivery and payment.
Multiple Choice Questions
(c.) 1. Managing the full range of the customer relationship involves two related objectives: (1) providing the organization and all
customer-facing employees with a single, complete view of every customer at every touch and across all channels, and
(2) providing _________________________.
a. suppliers with a single, complete view of the internal workings of the company
b. distributors with a single, complete view of the company and its extended channels
c. customers with a single, complete view of the company and its extended channels
d. customers, suppliers, and investors with a complete view of the internal workings of the company
(c.) 2. _______________ systems store customer account data in common databases and then make it available throughout a
company via Internet, intranet, or other network links.
a. Enterprise Resource Planning (ERP) b. Supply Chain Management (SCM)
c. Customer Relationship Management (CRM) d. Knowledge Management (KM)
(d.) 3. CRM systems store customer account data in common databases and then make it available throughout a company via all
the following, except:
a. Internet b. Intranet c. Network links d. Catalogs
(d.) 4. CRM software uses information technology to create an enterprise wide system that integrates and automates many of the
_______________ processes with which customers interact.
a. sales b. customer-serving c. marketing d. All of the choices are correct.
(d.) 5. A CRM system provides sales reps with the software tools and company data sources they need to _______________.
a. support and manage their sales activities b. optimize cross-selling c.
c. optimize up-selling d. All of the choices are correct. e.
(d.) 6. CRM systems help marketing professionals do all of the following except:
a. Qualify leads for targeted marketing b. Schedule direct marketing mailings
c. Track direct marketing mailings d. Build up-to-date marketing brochures
(a.) 7. CRM systems help fulfill prospect and customer responses and requests by doing all of the following except:
a. Mailing out additional marketing materials b. Providing product information
c. Capturing relevant information for the CRM database d. Quickly scheduling sales contacts
(c.) 8. It costs _______________ to sell to a new customer than it does to sell to an existing one.
a. twice as much b. the same amount c. Six times more d. half as much
(a.) 9. A typical dissatisfied customer will tell _______________ about his or her experience.
a. 8 to 10 people b. nobody c. everyone he/she knows d. 2-4 people
(d.) 10. A company can boost its profits ______________ by increasing its annual customer retention by only ______________.
a. 8 percent, 10 percent b. 100 percent, 2 percent c. 5 percent, 58 percent d. 85 percent, 5 percent
(a.) 11. If a company takes care of a service problem quickly, _______________ of complaining customers will do business with
the company again.
a. 70 percent b. 15 percent c. 50 percent d. 85 percent e.
(c.) 12. A CRM system should support the organization in which phase of the relationship between a business and its customers?
a. Acquire and enhance b. Enhance and retain c. Acquire, enhance, and retain d. Acquire and retain e.
11|P a g e Test Banki
Chapter 08 “Business across the Enterprise” MIS Test-Bankl
(c.) 13. A CRM system includes all the following phases, except:
a. Acquire b. Enhance c. Balance d. Retain e.
(a.) 14. The goal of the _______________ phase of a customer relationship is to help customers perceive the value of a superior
product offered by an outstanding company.
a. acquire b. enhance c. retain d. all of the choices are correct. e.
(c.) 15. In the _______________ phase of a customer relationship, a business relies on CRM software tools and databases to
proactively identify and reward its most loyal and profitable customers via targeted marketing programs.
a. acquire b. enhance c. retain d. all of the choices are correct. e.
(b.) 16. Which of the following is an example of the business value of collaborative CRM?
a. Provides all users with the tools and information that fit their individual roles and preferences
b. Improves efficiency and integration throughout the supply chain
c. Empowers all employees to respond to customer demands more quickly
d. Synchronizes customer interaction with greater convenience through a variety of channels, including phone, fax, e-mail,
chat, and mobile devices
(a.) 17. Enterprise resource planning is recognized as a necessary ingredient that many companies need in order to: 23
a. Gain the efficiency, agility, and responsiveness required to succeed in today's dynamic business environment
b. Maximize their marketing dollars
c. Reduce inventory levels
d. Hold onto competent employees in a competitive environment
(b.) 18. Enterprise resource planning software for a manufacturing company will typically process data from _______________.
a. sales orders and inventory c. accounts receivable and payable d. none of the choices are correct
b. sales, inventory, shipping, and invoicing, as well as from forecasts for raw material and human resources
(b.) 19. Fundamentally, _______________ helps a company get the right products to the right place at the right time, in the proper
quantity, and at an acceptable cost.
a. customer relationship management b. supply chain management c.
c. electronic data interchange d. partner relationship management e.
(d.) 20. Because each supply chain process should add value to the products or services a company produces, a supply chain is
frequently called a __________ chain.
a. process b. service c. product d. value (Supply chain) e.
Fill in the Blank Questions
1. _______ Systems store customer account data in common databases and then make it available throughout a company via
Internet, intranet, or other network links.
2. _______ Software routes calls to customer support agents based on their skills and authority to handle specific kinds of
service requests.
3. Enhancing and optimizing customer retention and _______ is a major business strategy and primary objective of customer
relationship management.
4. The three steps in the customer life cycle are _______________, _______________, and _______________.
5. Most businesses start out with ________ CRM systems, such as sales force automation and customer service centers. (18.)
6. The growth of the Internet and corporate _______________ and _______________ prompted software companies to build
Web interfaces and networking capabilities into ERP systems
7. The goal of SCM is to create a fast, efficient, and low-cost network of business relationships, or a _______________, to
get a company's products from concept to market.
8. Companies in stage _____ of a supply chain management implementation concentrate on making improvements to internal
supply chain processes and external processes and relationships with suppliers and customers.
9. Companies in stage _____ of a supply chain management implementation concentrate on expanding the business network
of Web-enabled SCM-capable trading partners in their supply chain to increase operational efficiency and effectiveness
in meeting strategic business objectives
10. Companies in stage _____ of a supply chain management implementation strive to optimize the development and
management of their supply chains in order to meet strategic customer value and business value goals.
Solutions: 1. CRM
2. call center 3. reality (loyalty!) 4. Acquire & enhancement & Retain
5. operational CRM 6. Intranet & extranet 7. Supply chain (Value chain)
8. Stage (1) 9. Stage (2) 10. Stage (3)

12|P a g e Test Banki