

Business Information Systems
Exam Practice Tests
Course Introduction
Business Information Systems explores the role of information technology in modern organizations, highlighting how businesses use computer-based systems to solve problems, streamline operations, and make informed decisions. The course covers topics such as data management, systems development, enterprise resource planning, e-commerce, and the strategic use of information systems for competitive advantage. Students will also examine issues related to security, ethics, and emerging technologies, while analyzing real-world cases to understand the impact of information systems on business processes and organizational performance.
Recommended Textbook
Experiencing MIS 4th Edition by David M. Kroenke
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30 Chapters
1707 Verified Questions
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Page 2
Chapter 1: The Importance of Mis
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Sample Questions
Q1) Which of the following is considered a strong password?
A)sword123
B)RileyyeliR
C)paranoid4EVER
D)BL@k2V1.0.1
Answer: D
Q2) Because of Moore's Law,the cost of data communications and data storage
A)is essentially zero
B)has increased exponentially
C)is witnessing an upward trend
D)has leveled off
Answer: A
Q3) If someone asks you for your password,do not share it with them.
A)True
B)False
Answer: True
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Page 3

Chapter 2: Business Processes information Systems and Information
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Sample Questions
Q1) A well-formatted report is characteristic of good information. A)True
B)False Answer: False
Q2) One of the major benefits of an information system is labor savings. A)True
B)False
Answer: True
Q3) To design an improved process,it is necessary to understand the existing process. A)True
B)False Answer: True
Q4) A collection of databases is an example of a repository. A)True
B)False Answer: True
Q5) Define information.
Answer: The most common definition of information is that information is knowledge derived from data,where data is defined as recorded facts or figures.
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Chapter 3: Organizational Strategy information Systems and Competitive Advantage
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Sample Questions
Q1) Porter's model of business activities includes linkages,which are interactions across value activities.
A)True
B)False
Answer: True
Q2) Which of the following is least likely to be an outcome of organizations forming alliances with each other?
A)promotion of product awareness
B)development of market size
C)establishment of standards
D)increase in purchasing costs
Answer: D
Q3) Each stage of the value chain not only adds value to the product but also
A)attracts buyers
B)accumulates costs
C)devalues the final product
D)attracts competitors
Answer: B

Page 5
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Chapter 4: Hardware and Software
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Sample Questions
Q1) Which of the following is part of volatile memory?
A)magnetic disk
B)magnetic tape
C)optical disk
D)cache
Q2) Which of the following is true of a 32-bit CPU?
A)It cannot effectively utilize more than 4GB of main memory.
B)It has a higher speed than any other processor.
C)It is ideal for creating large,complicated spreadsheets.
D)It is more expensive than the 64-bit CPU.
Q3) Software that provides capabilities common across all organizations and industries is known as ________ software.
A)vertical-market application
B)market-wide
C)horizontal-market application
D)generic-application
Q4) How can individuals and firms buy computer programs?
Q5) A flatbed plotter is an example of an input device.
A)True
B)False

6
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Chapter 5: Database Processing
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Sample Questions
Q1) How are database application programs useful?
Q2) Bytes,which are characters of data,are grouped into rows.
A)True
B)False
Q3) The application program serves as an intermediary between the Web server and the database.
A)True
B)False
Q4) Which of the following functions of a database involves setting up user accounts,passwords,permissions,and limits for processing the database?
A)administering the database
B)creating the database
C)modifying the database
D)processing the database
Q5) A group of similar rows or records is called a table.
A)True
B)False
Q6) Explain enterprise DBMS products.
Q7) Describe the usefulness of metadata.
Q8) Describe the functions of a database management system.
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Chapter 6: Data Communication and the Cloud
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Sample Questions
Q1) A(n)________ is a unique name that is affiliated with a public IP address.
A)tag
B)protocol
C)domain name
D)assigned name
Q2) A Virtual Private Network (VPN)is a type of LAN.
A)True
B)False
Q3) A ________ must be used to convert a computer's digital data to an analog,or wavy,signal.
A)tunnel
B)switch
C)modem
D)router
Q4) Which of the following statements about LAN protocols is true?
A)The access point uses both the 802.3 and 802.11 standards.
B)The IEEE 802.11 protocol is also called Ethernet.
C)The switch operates on the 802.11 standard.
D)WNICs operate on the 802.3 protocol and communicate with the switch.
Q5) Differentiate between private and public IP addresses.
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Chapter 7: Organizations and Information Systems
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Sample Questions
Q1) Which of the following is an example of a personal information system?
A)scheduling of groundskeeping
B)contact manager
C)charging of membership fees
D)ordering of restaurant supplies from suppliers
Q2) Workgroup information systems that support a particular department are sometimes called functional information systems.
A)True
B)False
Q3) Explain workgroup information systems.
Q4) The existence of information silos helps resolve any problems that may arise due to isolated information systems.
A)True
B)False
Q5) An enterprise resource planning system is a suite of applications,a database,and a set of inherent processes for managing all the interactions with the customer,from lead generation to customer service.
A)True
B)False
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Chapter 8: Social Media Information Systems
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Sample Questions
Q1) Both Web sites and social networking sites present user and responder content,but only social networking applications store and process connection data.
A)True
B)False
Q2) Seekers-of-the-truth communities cannot provide solutions to complex supply chain problems.
A)True
B)False
Q3) Social media ________ create the features and functions of the site,and they compete with one another for the attention of user communities and SM sponsors.
A)application providers
B)collaborators
C)sectors
D)outlets
Q4) In the context of CRM,social media means that the vendor loses control of the customer relationship.
A)True
B)False
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Chapter 9: Business Intelligence Systems
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Sample Questions
Q1) The goal of ________ is to create information about past performance.
A)data integration
B)data mining analysis
C)reporting
D)BigData
Q2) Pull publishing delivers business intelligence to users without any request from the users.
A)True
B)False
Q3) In ________,the impact of a set of variables on another variable is measured.
A)cluster analysis
B)context indexing
C)cloud computing
D)regression analysis
Q4) ________ publishing delivers business intelligence to users without any request from the users.
A)Push
B)Pull
C)Direct
D)Indirect
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Chapter 10: Information Systems Development
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Sample Questions
Q1) What is beta testing?
Q2) Test plans usually include not only the normal actions that users will take,but also incorrect actions.
A)True
B)False
Q3) The bigger the system and the longer the project,the more the requirements change.
A)True
B)False
Q4) During the ________ phase of the SDLC process,developers construct,install,and test the components of the information system.
A)requirements analysis
B)database design
C)feasibility assessment
D)implementation
Q5) What are the problems associated with the SDLC waterfall? Explain with an example.
Q6) What are the phases of the systems development life cycle (SDLC)?
Q7) What is meant by technical feasibility and organizational feasibility?
Q8) Why is systems development difficult and risky?
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Chapter 11: Information Systems Management
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Sample Questions
Q1) Outsourcing has no disadvantages whatsoever.
A)True
B)False
Q2) The ________ group protects data and information assets by establishing data standards and data management practices and policies.
A)data mining
B)information allocation
C)development
D)data administration
Q3) Software as a service (SaaS)is an alternative to outsourcing,in which hardware and both operating system and application software are leased.
A)True
B)False
Q4) The responsibilities of the CIO are the same as those of the CTO.
A)True
B)False
Q5) The potential loss of intellectual capital is a concern related to outsourcing.
A)True
B)False
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Chapter 12: Collaboration Information Systems for Decision
Making, Problem Solving, and Project Management
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Sample Questions
Q1) Which of the following is true of project data?
A)Schedules,tasks,budgets,and other managerial data are examples of project data.
B)Project data is data that is used to manage the project.
C)A document that describes a recommended solution is project data for a problem-solving project.
D)Project data are not subject to iteration and feedback.
Q2) In a collaborative team,the work proceeds in a series of steps in which one person produces something,others criticize it,and then a revised version is produced.These steps are known as ________.
A)iterations
B)alternatives
C)redundancies
D)repetitions
Q3) Predicting the future direction of the economy or the stock market is a classic example of a structured decision.
A)True
B)False
Q4) Differentiate between cooperation and collaboration with examples.
Page 14
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Chapter 12: Information Security Management
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Sample Questions
Q1) A(n)________ is a computer program that senses when another computer is attempting to scan the disk or otherwise access a computer.
A)intrusion detection system
B)account administration system
C)key escrow
D)malware definition
Q2) Incorrectly increasing a customer's discount is an example of incorrect data modification.
A)True
B)False
Q3) Which of the following is true regarding an incident-response plan?
A)The plan should provide decentralized reporting of all security incidents.
B)The plan should require minimal training on the part of employees.
C)The plan should identify critical personnel and their off-hours contact information.
D)The plan should be simple enough to ensure a fast response with limited practice.
Q4) The existence of spyware is generally unknown to the user.
A)True
B)False
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15

Chapter 14: Collaborative Information Systems for Student Projects
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Sample Questions
Q1) With SharePoint,it is possible to filter task lists to show only non-completed tasks.
A)True
B)False
Q2) What is version management and why is it important?
Q3) With the minimal collaboration tool set,the participant should be able to collaborate with his team,though he will get little support from the software.
A)True
B)False
Q4) Which of the following is a content sharing technique in which the sender does not have any control or record of changes made to the shared content?
A)email with attachments
B)Windows Live SkyDrive
C)Google Drive
D)wikis
Q5) A face-to-face meeting is an example of asynchronous communication. A)True
B)False
Q6) What are the three sets of collaboration tools?
Page 16
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Chapter 15: Introduction to Microsoft Excel 2010
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Sample Questions
Q1) Microsoft Help can be accessed by clicking the question mark located in the ribbon bar below the Review tab.
A)True
B)False
Q2) An Excel workbook is a collection of one or more spreadsheets.
A)True
B)False
Q3) The rows in an Excel spreadsheet are identified by letters,and the columns are identified by numbers.
A)True
B)False
Q4) What is a spreadsheet in Excel?
Q5) In Excel,every formula must begin with an equal sign.
A)True
B)False
Q6) The View tab is used to configure the appearance of Excel.
A)True
B)False
Q7) What are the different ways of entering data into an Excel worksheet?
Q8) The real power of Excel lies in its amazing computational capability.Explain.
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Chapter 16: Database Design
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Sample Questions
Q1) Normalization is the process of converting poorly structured tables into two or more well-structured tables.
A)True
B)False
Q2) Explain the role of users in designing a database.
Q3) The notation N: N is used to indicate a many-to-many relationship in E-R diagrams.
A)True
B)False
Q4) The general goal of normalization is to construct tables such that every table has a single topic or theme.
A)True
B)False
Q5) The maximum number of entities that can be involved in a relationship is known as maximum cardinality.
A)True
B)False
Q6) Explain the difference between maximum and minimum cardinality.
Q7) How is a data model transformed into a database design?
Q8) What are the different types of relationships represented in a data model?
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Chapter 17: Using Microsoft Access 2010
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Sample Questions
Q1) Explain the different alternatives provided by Microsoft Access for creating data entry forms.
Q2) The description field in Microsoft Access is used mainly for documentation.
A)True
B)False
Q3) Which of the following tabs in Microsoft Access is used to generate reports?
A)Create
B)Data
C)Tools
D)Format
Q4) Relationships can be defined in Microsoft Access by selecting the ________ tab in the ribbon.
A)Database Tools
B)External Data
C)Connections
D)Add-ins
Q5) In Microsoft Access,a report is created using a process similar to that for forms. A)True
B)False
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Chapter 18: Using Excel and Access Together
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Q1) Which of the following is true of import/export of data from Access to Excel?
A)Data can only be transferred by exporting the data into a text file and then importing that text data.
B)Delimited text files cannot be imported into both Excel and Access.
C)The import/export process maintains an active connection to the source of the data.
D)If data in Access is changed,the data must be re-imported into Excel to be up-to-date.
Q2) The Totals button is present in the Results section of the Design tab.
A)True
B)False
Q3) To use Excel to process data stored in Access,it is recommended to rekey all of the Access data into Excel.
A)True
B)False
Q4) A pie chart can be used to compare results for two years or more.
A)True
B)False
Q5) Explain the significance of using Access and Excel together.
Q6) Explain the procedure for creating graphs in Microsoft Excel.
Page 20
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Chapter 19: Mobile Systems
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Sample Questions
Q1) ________ occurs when users move their activities,especially long-running transactions,across devices.
A)Cloud computing
B)Roaming
C)Direct interaction
D)Interfacing
Q2) In a ________ application,the browser provides a more-or-less consistent environment for the application.
A)virtual
B)native
C)thick-client
D)thin-client
Q3) The advantages of employee use of mobile systems at work include cost savings and greater employee satisfaction.
A)True
B)False
Q4) Just-in-time data is data delivered to the user at the precise time it is needed.
A)True
B)False
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Chapter 20: Functional Applications
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Sample Questions
Q1) What are the major functions of accounting applications?
Q2) Which of the following is a function of the finished-goods inventory management module of operations applications?
A)tracking order through fulfillment
B)recording payment method
C)controlling inventory
D)entering order for processing
Q3) Creating and maintaining master production schedule is a function of the manufacturing-scheduling application.
A)True
B)False
Q4) Tracking an order through fulfillment is a function of the order entry module of operations applications.
A)True
B)False
Q5) Just-in-time (JIT)inventory policy is adopted by companies that view inventories as assets.
A)True
B)False
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Chapter 21: Enterprise Resource Planning ERP systems
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Sample Questions
Q1) Stored procedure is a computer program stored within the database that runs to keep the database consistent when certain conditions arise.
A)True
B)False
Q2) Epicor's lead ERP product is based on a modern software development design pattern called service-oriented architecture.
A)True
B)False
Q3) Which of the following is true of the impact of ERP on small organizations?
A)IT specialists in small organizations are dedicated to managing only the ERP system.
B)The IT staff in small organizations is isolated from senior management.
C)In small organizations,ERP implementation will be part of a strategic process and,once begun,will have the full backing of the entire executive group.
D)IT specialists in small organizations are spread very thin and often are in over their heads during an ERP implementation.
Q4) What is the primary purpose of an ERP system?
Q5) Give a brief description of Epicor's ERP products.
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Page 23

Chapter 22: Supply Chain Management
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Sample Questions
Q1) The Automated Clearing House system among banks is an example of an interorganizational system.
A)True
B)False
Q2) Which of the following is true about the bullwhip effect?
A)Small changes in demand at the supplier are amplified at each stage of the supply chain.
B)It is a natural dynamic that occurs because of the multistage nature of the supply chain.
C)It is strongly associated with erratic consumer demand.
D)It increases the overall profitability of the supply chain.
Q3) Supply chain profitability is the difference between the sum of the revenue generated by the supply chain and the sum of the costs that all organizations in the supply chain incur to obtain that revenue.
A)True
B)False
Q4) Raw materials are not considered as inventory in the supply chain.
A)True
B)False
Q5) What are interorganizational business systems?
Page 24
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Chapter 23: Hyper-Social Organizations and Knowledge Management
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Sample Questions
Q1) The documents in content management systems are nonperishable.
A)True
B)False
Q2) What is the purpose of a rich directory?
Q3) What are content management systems? Define any three challenges of content management.
Q4) What is knowledge management? How does it benefit an organization?
Q5) A(n)________ is an employee directory that includes not only the standard name,email,phone,and address,but also organizational structure and expertise.
A)rich directory
B)active directory
C)external directory
D)internal directory
Q6) The programs that process a set of rules are called ________.
A)expert systems codes
B)expert systems databases
C)expert systems shells
D)expert systems files

25
Q7) What are the characteristics of a hyper-social organization?
Q8) What are content management application alternatives?
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Chapter 24: Database Marketing
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Q1) RFM can be a useful tool to determine who your best customers are and who hasn't been in to the store in a while.
A)True
B)False
Q2) The RFM score is obtained by ranking the customers on the basis of pricing patterns.
A)True
B)False
Q3) A high F score denotes that the customer has bought an expensive item recently.
A)True
B)False
Q4) ________ shows how much the base probability increases or decreases when other products are purchased.
A)Lift
B)Support
C)Confidence
D)Cohesion
Q5) Data mining techniques are essential for database marketing.
A)True
B)False
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Chapter 25: Reporting Systems and OLAP
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Q1) A report on current stock prices is an example of a static report.
A)True
B)False
Q2) In the OLAP reports,the data item that is to be processed is called ________.
A)measure
B)dimension
C)cube
D)drill
Q3) Reporting systems use dedicated indexing systems instead of metadata to prepare and deliver reports to the proper users on a timely basis.
A)True
B)False
Q4) Pull report refers to ________.
A)a report that takes hours for creation
B)a report about the functioning of the system
C)a report generated by user request
D)a report prepared from the underlying data
Q5) Users are not allowed to alter the format of OLAP reports.
A)True
B)False

28
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Chapter 26: Geographic Information Systems
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Sample Questions
Q1) ________ create GIS systems in response to requirements.
A)Developers
B)Field personnel
C)Business intelligence users
D)Operations personnel
Q2) A business that wants to view a map of a customer's location is a business intelligence user.
A)True
B)False
Q3) A geographic information system (GIS)is an information system that captures,stores,analyzes,and displays ________ data.
A)geospatial
B)geosynchronous
C)geological
D)geometric
Q4) Explain the procedures component of a GIS.
Q5) GIS create information by manipulating and displaying data in a geospatial context.
A)True
B)False
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Chapter 27: Systems Development Project Management
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Q1) Users must take responsibility for managing requirements changes and for avoiding requirements creep.
A)True
B)False
Q2) A ________ is a hierarchy of the tasks required to complete a project.
A)baseline
B)work-breakdown structure
C)reliable analysis
D)V-Model
Q3) Regarding task dependencies,all tasks must begin and end at the same time.
A)True
B)False
Q4) What is the PMBOK Guide for project management? List the components of the grid in PMBOK Guide 2004.
Q5) Taking responsibility for requirements is the single most important task a user can perform for a large-scale development project.
A)True
B)False
Q6) What are the characteristics of large-scale systems development projects?
Page 30
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Chapter 28: Agile Development
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Q1) Unlike agile technologies,the SDLC delivers benefits early and often.
A)True
B)False
Q2) The nature of the SDLC denies the fact that system requirements are fuzzy and always changing.
A)True
B)False
Q3) According to the SDLC,the progress from requirements to design to implementation is called the ________ method.
A)life cycle
B)waterfall
C)water cycle
D)scrum
Q4) Agile development methodologies discourage interaction between developers and customers.
A)True
B)False
Q5) In a scrum,who is a scrum master? What are his/her responsibilities?
Q6) According to the scrum essentials,when is a project said to be done?
Q7) Briefly outline the scrum essentials.
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Chapter 29: Business Process Management
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Sample Questions
Q1) Business processes consist of activities that do not involve information systems.
A)True
B)False
Q2) How can a change in customers,product lines,and supply chains affect business processes?
Q3) The resolution of implementation problems can be difficult for enterprise and inter-enterprise processes because there is no recognized authority to enforce solutions.
A)True
B)False
Q4) It is impossible to buy an off-the-shelf computer application.
A)True
B)False
Q5) If employees are already using an IS,another way of adjusting role resources is to improve the information system so as to facilitate the new process.
A)True
B)False
Q6) Describe business process management (BPM)in brief.
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Page 32

Chapter 30: International Mis
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Q1) If a distributed database divides the database into nonoverlapping segments,it is called a(n)________ database.
A)mirrored
B)replicated
C)independent
D)partitioned
Q2) What are the challenges of international information systems management?
Q3) Internationalization has a huge impact on computer hardware.
A)True
B)False
Q4) How does the global economy change competitive strategy?
Q5) The purpose and scope of the system is determined in the systems definition stage of the Software Development Life Cycle (SDLC).
A)True
B)False
Q6) Today's global economy changes competitive strategies because ________.
A)it enables unprecedented product differentiation
B)the communication between a company and its customer has become one-sided
C)it reduces the risk that a company has to bear
D)it eliminates the need for localizing products
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