Business Information Systems
Exam Practice Tests
Course Introduction
Business Information Systems explores the role of information technology in supporting business processes, decision-making, and strategic objectives within organizations. The course covers fundamental concepts such as information systems types, data management, business analytics, enterprise resource planning (ERP), and e-commerce solutions. Students will examine how organizations leverage information systems to improve efficiency, enhance competitiveness, and respond to evolving business challenges. The course also addresses ethical and security considerations, system development life cycles, and the impact of emerging technologies on business environments. Through case studies and practical projects, students gain hands-on experience in analyzing and implementing information systems to solve real-world business problems.
Recommended Textbook
Management Information Systems 12th Edition by Kenneth C. Laudon
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15 Chapters
1350 Verified Questions
1350 Flashcards
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Page 2
Chapter 1: Information Systems in Global Business Today
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Sample Questions
Q1) ________ is data that has been shaped into a form that is meaningful to human beings.
Answer: Information
Q2) How does a company's use of information systems affect its corporate strategies? Provide an example.
Answer: A firm's ability to effectively use information technology is interdependent with its ability to implement corporate strategies and achieve corporate goals. More and more, the ability to compete and succeed depends on a company's ability to implement technology. What a business would like to do in the future can depend on what its systems will be able to do. Examples of this might be a company who invests in information systems that enable it to create new products or to make its distribution system more efficient, allowing the company to become the low-cost producer.
Q3) Which of the following would not be a complementary asset for a solar panel manufacturer?
A) international solar equipment certification standards
B) government funding for green technology
C) centralized hierarchical decision making
D) innovation-driven management team
Answer: C
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Page 3
Chapter 2: Global E-Business and Collaboration
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Sample Questions
Q1) Decision-support systems use internal information as well as information from external sources.
A)True
B)False
Answer: True
Q2) Enrolling employees in benefits plans is a business process handled by the finance and accounting function.
A)True
B)False
Answer: False
Q3) Which type of system would you use to determine what trends in your supplier's industry will affect your firm the most in five years?
A) ESS
B) TPS
C) MIS
D) DSS
Answer: A
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Page 4
Chapter 3: Information Systems, Organizations, and Strategy
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Sample Questions
Q1) List three organizational factors that can prevent a firm from fully realizing the benefits of a new information system, and provide examples for each.
Answer: Features of organizations include the organization's culture, politics, and structure. A new information system might be resisted by end users or by managers for political reasons because they are concerned about the political changes the system implies. For example, a new system might lessen the authority of a manager in overseeing the employees, and he or she may not want to relinquish this power. A new information system might challenge the organization's culture and be resisted for this reason. For example, an information system might allow students at a university to take self-managed courses, while the university's basic cultural assumptions include the concept that professors are the purveyors of knowledge. An information system, by allowing the distribution of knowledge, may be better used in a company with a flatter organization. A company with a highly stratified hierarchy may have difficulty adjusting its business processes and structures to an information system that does not follow the same business hierarchy of information.
Q2) A(n) ________ is an activity at which a firm excels as a world-class leader.
Answer: core competency
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Page 5
Chapter 4: Ethical and Social Issues in Information Systems
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Sample Questions
Q1) The strength of patent protection is that it
A) puts the strength of law behind copyright.
B) allows protection from Internet theft of ideas put forth publicly.
C) is easy to define.
D) grants a monopoly on underlying concepts and ideas.
Q2) Define the basic concepts of responsibility, accountability, and liability as applied to ethical decisions. How are these concepts related?
Q3) A(n) ________ is a private, self-regulating policy and enforcement mechanism that meets the objectives of government regulators but does not involve government enforcement.
Q4) Which of the following adjusts copyright laws to the Internet age by making it illegal to circumvent technology-based protections of copyrighted materials?
A) Digital Millennium Copyright Act
B) Privacy Act
C) Freedom of Information Act
D) Electronic Communications Privacy Act
Q5) What do you consider to be the primary ethical, social, and political issues regarding information system quality?
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Chapter 5: It Infrastructure and Emerging Technologies
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Sample Questions
Q1) You are starting a market research company with a single business partner and are planning the hardware and software needed for the two of you. Which factors should play into your decision of how much to spend on these investments?
Q2) A SAN is a ________ network.
A) server area
B) storage area
C) scalable architecture
D) service-oriented architecture
Q3) Whereas XML is limited to describing how data should be presented in the form of Web pages, HTML can perform presentation, communication, and data storage tasks.
A)True
B)False
Q4) Hardware and software acquisition costs account for about ________ percent of TCO.
A) 20
B) 40
C) 60
D) 80
Q5) Distinguish between grid computing, cloud computing, and utility computing.
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Chapter 6: Foundations of Business Intelligence: Databases and Information Management
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Sample Questions
Q1) Common Gateway Interface is a specification for processing data on a Web server.
A)True
B)False
Q2) List and describe three main capabilities or tools of a DBMS.
Q3) The technique of using data mining, historical data, and assumptions about future conditions is called ________.
Q4) The specialized language programmers use to add and change data in the database is called
A) a data access language.
B) a data manipulation language.
C) Structured Query Language.
D) a data definition language.
Q5) A grouping of characters into a word, a group of words, or a complete number is called a record.
A)True
B)False
Q6) DBMS have a(n) ________ capability to specify the structure of the content of the database.
8
Q7) List at least three conditions that contribute to data redundancy and inconsistency.
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Q1) Identify the layers of the Department of Defense reference model for TCP/IP, and describe how this model works.
Q2) Circuit switching makes much more efficient use of the communications capacity of a network than does packet switching.
A)True
B)False
Q3) ________ is the manner in which the components of a network are connected.
Q4) Which signal types are represented by a continuous waveform?
A) laser
B) optical
C) digital
D) analog
Q5) The child domain of the root is the
A) top-level domain.
B) second-level domain.
C) host name.
D) domain extension.
Q6) Telephone networks are fundamentally different from computer networks.
A)True
B)False Page 9
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Page 10
Chapter 8: Securing Information Systems
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Sample Questions
Q1) Downtime refers to periods of time in which a A) computer system is malfunctioning.
B) computer system is not operational.
C) company or organization is not operational.
D) computer is not online.
Q2) Tricking employees to reveal their passwords by pretending to be a legitimate member of a company is called A) sniffing.
B) social engineering.
C) phishing.
D) pharming.
Q3) A salesperson clicks repeatedly on the online ads of a competitor in order to drive the competitor's advertising costs up. This is an example of A) phishing.
B) pharming.
C) spoofing.
D) click fraud.
Q4) When errors are discovered in software programs, the sources of the errors are found and eliminated through a process called ________.
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Chapter 9: Achieving Operational Excellence and Customer
Intimacy:
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Q1) In a push-based model of SCM systems, actual customer orders or purchases trigger events in the supply chain.
A)True
B)False
Q2) Enterprise application vendors have created ________ to make their own customer relationship management, supply chain management, and enterprise systems work closely together with each other.
A) e-business suites
B) ERP systems
C) middleware
D) legacy systems
Q3) The most explosive growth in SaaS offerings has been for ________ software, exemplified by the leadership in hosted solutions by Salesforce.com
Q4) Selling a customer with a checking account a home improvement loan is an example of
A) operational CRM.
B) direct marketing.
C) cross-selling.
D) cross-channel promotions.
Page 12
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Chapter 10: E-Commerce: Digital Markets, Digital Goods
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Q1) The lowered costs of information storage, processing, and communication, along with the improvement of data quality, has resulted in which unique quality of e-commerce?
A) information density
B) richness
C) customization
D) interactivity
Q2) In general, for digital goods, the marginal cost of producing another unit is about zero.
A)True
B)False
Q3) The costs that a consumer spends in making a purchase, such as traveling to a store, are called ________ costs.
Q4) EDI is
A) the use of Internet technologies for electronic data transactions.
B) the exchange between two organizations of standard transactions through a network.
C) electronic data invoicing.
D) electronic delivery infrastructure.
Q5) A(n) ________ is another term for a private industrial network.
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Chapter 11: Managing Knowledge
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Q1) ________ is explicit knowledge that exists in formal documents, as well as in formal rules that organizations derive by observing experts and their decision-making behaviors.
Q2) Which of the following is not a typical component or capability of an enterprise-wide knowledge management system?
A) collaboration tools
B) KWS
C) document management
D) LMS
Q3) You are an automotive engineer working on an application that will automatically parallel park a car. The intelligent technique you may find most useful is
A) case-based reasoning.
B) artificial intelligence.
C) fuzzy logic.
D) expert system.
Q4) Identify three important qualities or capabilities of knowledge work systems.
Q5) The model of human knowledge used by expert systems is called the ________.
Q6) Briefly outline the knowledge management chain as it might apply to the online catalog system of a public library.
Page 14
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Chapter 12: Enhancing Decision Making
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Q1) The concept of management ________ describes situations in which managers act on biases that reject information that does not conform to their expectations.
Q2) The leading methodology for understanding the really important information needed by a firm's executives is called the ________ method.
A) digital dashboard
B) balanced scorecard
C) KPI
D) data visualization
Q3) Operational managers tend to make more structured decisions.
A)True
B)False
Q4) Which of the following are most likely to rely primarily on production reports for their decision-making needs?
A) operational employees and supervisors
B) senior managers
C) analytic modelers
D) business analysts
Q5) What is the business value of a GDSS?
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Chapter 13: Building Information Systems
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Sample Questions
Q1) ________ describe the transformation occurring within the lowest level of the data flow diagrams.
Q2) A problem with prototyping is that the systems constructed using this method may not be able to handle large quantities of data in a production environment.
A)True
B)False
Q3) ________ provide(s) a methodology and tools for dealing with the organization's ongoing need to revise and optimize its numerous business processes.
A) Business process redesign
B) Business process management
C) CASE tools
D) TQM
Q4) What qualities of object-oriented development make this method especially suitable for Internet applications?
Q5) Identify and describe each of the five systems development approaches.
Q6) ________ design is a process used to accelerate the generation of information requirements by having end-users and information system specialists work together in intensive interactive design sessions.
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Chapter 14: Managing Projects
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Sample Questions
Q1) You are using a capital budgeting method to assess the worth of your company's new information system. Which of the following costs would you include in measuring the cash outflow?
A) increased sales of products
B) hardware and software expenditures
C) labor expenditures
D) reduced costs in production and operation
E) both A and D
F) both B and C
G) A, B, C and D
Q2) The information systems steering committee is composed of information systems managers and end-user managers responsible for overseeing several specific information systems projects.
A)True
B)False
Q3) An example of using an external integration tool would be to
A) define task dependencies.
B) include user representatives as active members of the project team.
C) create a PERT chart.
D) hold frequent project team meetings.
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Chapter 15: Managing Global Systems
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Sample Questions
Q1) Making judgments and taking action on the basis of narrow or personal characteristics is referred to as
A) localization.
B) cooptation.
C) particularism.
D) prejudicial.
Q2) ________ systems support functions that are absolutely critical to the organization.
Q3) To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms have developed information systems within each European country.
A)True
B)False
Q4) How do cultural, legal, political, and social expectations affect global business?
Q5) List at least four difficult problems for management in the development of the international information system. Which do you see as the most problematic, and why?
Q6) What steps do the authors recommend be taken to develop an international information systems architecture?
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