Business Information Systems
Exam Answer Key
Course Introduction
Business Information Systems explores the critical role of information technology in modern organizations, focusing on how businesses use computer-based systems to manage operations, decision-making, and strategic advantage. The course covers fundamental concepts of hardware, software, databases, networking, and security, alongside an introduction to enterprise systems such as CRM and ERP. Students will analyze case studies to understand how effective information systems support business objectives, streamline processes, and enhance communication and collaboration within and outside an organization. Emphasis is placed on both the technical and managerial aspects of information systems, preparing students to bridge the gap between IT solutions and business needs.
Recommended Textbook
Information Systems Today Managing in the Digital World 6th Edition by Joe
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Valacich
Chapter 1: Managing in the Digital World
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Sample Questions
Q1) The ________ Act of 1986 made it much more difficult for anyone,including the government,to eavesdrop on phone conversations.
A) Electronic Communication Modernization
B) Internet Privacy
C) Sarbanes-Oxley
D) Gramm-Leach-Bliley
E) Electronic Communications Privacy
Answer: E
Q2) Which of the following IS personnel is responsible for managing the firm's Web site?
A) IS auditor
B) Web host
C) Web hacker
D) Webmaster
E) systems analyst
Answer: D
Q3) Data about one's tastes and preferences is an example of demographic data.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Gaining Competitive Advantage Through Information Systems
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Sample Questions
Q1) Which of the following actions of a firm suggests that it is using the freemium approach to applying freeconomics?
A) providing free services to customers and getting paid for it by third parties
B) reducing the sale price of one item in order to sell something else of value
C) distributing products to customers without an appreciable cost to anyone
D) offering basic services for free,but charging a premium for special features
E) allowing people to participate and collaborate to create something of value
Answer: D
Q2) List Porter's primary competitive forces that analyze the competition within an industry.
Answer: Porter's primary competitive forces include:
1.rivalry among competing sellers in an industry
2.threat of potential new entrants into an industry
3.bargaining power that customers have within an industry
4.the bargaining power that suppliers have within an industry
5.the potential for substitute products from other industries
Q3) Executive-level decisions are referred to as unstructured decisions.
A)True
B)False
Answer: True
Page 4
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Chapter 3: Managing the Information Systems
Infrastructure and Services
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Sample Questions
Q1) With respect to the general classes of computers,a ________ is used for small business computing.
A) workstation
B) personal computer
C) mainframe
D) server
E) supercomputer
Answer: B
Q2) ________ is used to increase Web application performance.
A) Trusted computing
B) Distributed computing
C) Edge computing
D) IP convergence
E) Green computing
Answer: C
Q3) In grid computing,the slowest computer creates a bottleneck and slows down the entire grid.
A)True
B)False
Answer: True
Page 5
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Chapter 4: Enabling Business-to-Consumer Electronic Commerce
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Sample Questions
Q1) Briefly describe the benefits of e-tailing.
Q2) With respect to pay-per-click models,inflating the revenue to a host or increasing costs for the advertiser by repeatedly clicking on a link is called ________ fraud.
A) link
B) affiliate
C) click
D) conversion
E) disintermediation
Q3) With respect to typical revenue models for electronic commerce businesses,Symantec and Norton are using a(n)________ revenue model.
A) subscription
B) licensing
C) affiliate marketing
D) brokerage
E) traditional sales
Q4) Explain the relationships of e-government.
Q5) Write a note on social media marketing with an illustration.
6
Q6) Distinguish between network click fraud and competitive click fraud.
Q7) Explain e-auctions and their different categories.
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Chapter 5: Enhancing Organizational Communication and Collaboration Using Social Media
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Sample Questions
Q1) Which of the following statements is true about a Real Simple Syndication (RSS)feed?
A) It is used to increase brand awareness through the network effect.
B) It is used to disseminate information to a narrow audience.
C) It is used to market the product without the audience realizing it.
D) It is used to enable people to work in more flexible ways on a variety of Internet-related projects.
E) It is used to access the most current blogs,podcasts,videos,and news stories.
Q2) When Web pages are designed using semantic principles,computers will be able to read the pages,and search engines will be able to give richer and more accurate answers.
A)True
B)False
Q3) Which of the following statements is true about viral marketing?
A) It uses the network effect to increase brand awareness.
B) It uses everyday people as a cheap labor force.
C) It is the dissemination of information to a narrow audience.
D) It enables people to work in more flexible ways on a variety of Internet-related projects.
E) It is used to market a product without the audience realizing it.
Page 7
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Chapter 6: Enhancing Business Intelligence Using Information Systems
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Sample Questions
Q1) Data mining complements online analytical processing in that it ________.
A) finds associations or correlations among sets of items
B) provides capabilities for discovering "hidden" predictive relationships in the data
C) extracts textual information from Web documents
D) groups related records together on the basis of having similar values for attributes
E) analyzes different dimensions of data beyond simple data summaries
Q2) An attribute is also referred to as a ________.
A) form
B) record
C) field
D) query
E) bot
Q3) Which of the following statements is true about hard data?
A) It involves the use of text mining technologies.
B) It includes nonanalytical information.
C) It involves input from dedicated personnel.
D) It includes textual news stories.
E) It includes facts and numbers.
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Chapter 7: Enhancing Business Processes Using Enterprise
Information Systems
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Sample Questions
Q1) Information systems management is one of the traditional functional areas that companies are organized around.
A)True
B)False
Q2) Customers can purchase ________ software off the shelf to help them with their personal documents and communications.
A) personalized
B) tailored
C) packaged
D) custom
E) bespoke
Q3) Define internally focused systems and externally focused systems.
Q4) An online retailer has finished creating a customer record.What would be the next step for the retailer in an order-to-cash process?
A) create order
B) allocate stock
C) pick,pack,and ship
D) prepare and send invoice
E) check customer's creditworthiness
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Chapter 8: Strengthening Business-to-Business
Relationships via Supply Chain and Customer Relationship
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Sample Questions
Q1) List the ways in which collaborative CRM enhances communication.
Q2) Just-in-time is a business model in which the suppliers manage the manufacturer's inventory based on preestablished service levels.
A)True
B)False
Q3) ________ refers to the use of key performance indicators to monitor performance of the entire supply chain,including sourcing,planning,production,and distribution.
A) Demand forecasting
B) Supply network collaboration
C) Supply chain visibility
D) Supply chain efficiency
E) Supply chain analytics
Q4) Which of the following is a component of the operational CRM system?
A) sales force automation
B) data warehouses
C) ERP systems
D) data mining and visualization
E) business intelligence
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Q5) List some of the enterprise-wide changes a successful CRM strategy must include.
Chapter 9: Developing and Acquiring Information Systems
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Sample Questions
Q1) Which of the following is true of system effectiveness?
A) It is the extent to which a system enables the firm to accomplish goals well.
B) It is the extent to which a system allows a firm to plan its tasks.
C) It is the extent to which a system enables the firm to do things faster,at lower cost.
D) It is the extent to which a system allows a firm to cut operational costs.
E) It is the extent to which a system enables people to accomplish tasks with relatively little time and effort.
Q2) Business case arguments based on fear are dependent on ________.
A) the belief that implementing the new information system can have significant positive consequences for the firm
B) beliefs about organizational strategy,competitive advantage,industry forces,customer perceptions,market share,and so on
C) data,quantitative analysis,and/or indisputable factors
D) the notion that if the system is not implemented,the firm will lose out to the competition or go out of business
E) the results of a qualitative analysis of employee responses to the new information system
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Chapter 10: Securing Information Systems
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Sample Questions
Q1) What is unauthorized access? Provide a few examples of unauthorized access.
Q2) Detective controls are used to prevent any potentially negative event from occurring,such as preventing outside intruders from accessing a facility.
A)True
B)False
Q3) A mass cyber attack occurred in a country when it took severe actions against a group of citizens who protested against the country's religious policies.The attack involved a denial-of-service in which selected sites were bombarded with traffic to force them offline.This is an example of ________.
A) cyberterrorism
B) logic bombing
C) hot backing up
D) cyberbullying
E) cybersquatting
Q4) A honeypot is a computer,data,or network site that is used to penetrate other networks and computer systems to snoop or to cause damage.
A)True
B)False
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Chapter 11: Foundations of Information Systems Infrastructure
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Sample Questions
Q1) The only difference between Java and JavaScript is that JavaScript cannot perform the Java function of supplying interactive content to Web pages.
A)True
B)False
Q2) ________ is the set of rules that governs how a given node or workstation gains access to the network to send or receive data.
A) Packet switching
B) Authentication service
C) Source code
D) Object oriented language
E) Media access control
Q3) A ________ key is a unique identifier that should be created and used when designing a database for each type of entity,in order to store and retrieve data accurately.
A) foreign
B) surrogate
C) primary
D) super
E) candidate
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