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Business Information Systems Exam Review - 1799 Verified Questions

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Business Information Systems

Exam Review

Course Introduction

Business Information Systems explores the strategic use of information technology in organizations to support decision-making, streamline processes, and create business value. This course covers fundamental concepts of how businesses leverage information systems for operations, management, and competitive advantage. Students will learn about key information technologies, systems development life cycles, data management, enterprise resource planning (ERP), e-commerce, and the ethical, legal, and security issues related to business information systems. Emphasis is placed on analyzing real-world case studies and understanding how information systems integrate with various business functions, preparing students to critically evaluate and implement technology solutions in today's dynamic business environment.

Recommended Textbook

Experiencing MIS 3rd Edition by David M. Kroenke

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33 Chapters

1799 Verified Questions

1799 Flashcards

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Chapter 1: The Importance of MIS

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Sample Questions

Q1) Describe an information system.

Answer: A system is a group of components that interact to achieve some purpose.An information system (IS)is a group of components that interact to produce information.An IS is based on the five-component framework of computer hardware,software,data,procedures,and people.These five components are present in every information system-from the most simple to the most complex.

Q2) The cost of ________ is so low that it is essentially free.

A) software

B) hardware

C) data storage

D) data

Answer: C

Q3) What is experimentation? Explain its importance.

Answer: Successful experimentation is not throwing buckets of money at every idea that enters your head.Instead,experimentation is making a reasoned analysis of an opportunity,envisioning potential solutions,evaluating those possibilities,and developing the most promising ones,consistent with the resources you have.Fear of failure paralyzes many good people and many good ideas.This can be overcome by having the ability to experiment.

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Chapter 2: Business Processes, Information, and Information Systems

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Sample Questions

Q1) Resources are sets of procedures.

A)True

B)False Answer: False

Q2) What are the costs associated with information? When is information considered to be worth its cost?

Answer: Information is not free.There are costs for developing an information system,costs of operating and maintaining that system,and costs of your time and salary for reading and processing the information the system produces.For information to be worth its cost,an appropriate relationship must exist between the cost of information and its value.

Q3) Software and procedure components are both sets of instructions,in the IS framework.

A)True

B)False

Answer: True

Q4) One of the major benefits of an information system is labor savings. A)True

B)False Answer: True

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Chapter 3: Organizational Strategy, Information Systems, and Competitive Advantage

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Sample Questions

Q1) In which of the following cases is the strength of competitive forces low?

A) when switching costs are high

B) when rival products are priced low

C) when customer loyalty is low

D) when the product is unique

Answer: A

Q2) Business processes implement value chains or portions of value chains.

A)True

B)False

Answer: True

Q3) A business with a cost strategy will add cost to an activity only as long as the activity has a positive margin.

A)True

B)False

Answer: False

Q4) Raising barriers to market entry is a product implementation principle.

A)True

B)False

Answer: False

Page 5

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Chapter 4: Hardware and Software

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Sample Questions

Q1) Software that provides capabilities common across all organizations and industries is known as ________ software.

A) enterprise

B) market-wide

C) horizontal-market application

D) generic-application

Q2) One ________ is equivalent to 1024 gigabytes.

A) gigabyte

B) terabyte

C) megabyte

D) kilobyte

Q3) ________ is a program that controls the computer's resources.

A) Cache

B) Operating system

C) Application

D) Bus

Q4) A switch representation of the binary notation 1011 will be open;closed;open;open.

A)True

B)False

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Chapter 5: Database Processing

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Sample Questions

Q1) A more formal name for a table is grid.

A)True

B)False

Q2) A table is also called a ________.

A) record

B) row

C) file

D) column

Q3) Which of the following stands true for personal DBMS products?

A) Personal DBMS products are designed for simple database applications.

B) Personal DBMS products support many users.

C) Personal DBMS products can manage databases that span dozens of different magnetic disks.

D) MySQL is an example of a personal DBMS product.

Q4) Which of the following is the most significant personal DBMS product available in the market today?

A) MS Access

B) FoxPro

C) dBase

D) Paradox

Page 7

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Chapter 6: Data Communications

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Sample Questions

Q1) ________ is the most common language for defining the structure and layout of Web pages.

A) HTML

B) VPN

C) Flash

D) XML

Q2) Explain Transmission Control Protocol (TCP).

Q3) Asymmetrical digital subscriber lines meet performance level guarantees by offering the same fast speed in both directions.

A)True

B)False

Q4) Which protocol standard used for wired LAN connections specifies hardware characteristics,such as which wires carry which signals?

A) intranet

B) WiMax

C) Ethernet

D) EVDO

Q5) What are the three important functions of an ISP?

Q6) Identify the differences between ADSL and SDSL.

Page 8

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Chapter 7: Business Process Management

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Sample Questions

Q1) ________ is the activity of altering and designing business processes to take advantage of new information systems.

A) Business process management

B) Business process reengineering

C) Business process improvement

D) Business process interoperability

Q2) Which of the following is an example of a workgroup information system?

A) charging of membership fees

B) contact manager

C) accounts payable system

D) ordering of restaurant supplies from suppliers

Q3) The existence of information silos helps resolve any problems that may arise due to isolated information systems.

A)True

B)False

Q4) Which of the following is a component of relationship management?

A) converting prospects into customers who need to be supported

B) increasing the value of existing customers by selling them more product

C) losing customers

D) sending messages to the target audience to attract customer prospects

Page 9

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Chapter 8: E-Commerce, Web 20, and Social Networking

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Sample Questions

Q1) Traditional B2C information systems rely on a(n)________ that customers use to enter and manage their orders.

A) auction forum

B) electronic exchange

C) clearinghouse

D) Web storefront

Q2) Social capital is the investment in social relations with the expectation of returns in the marketplace.

A)True

B)False

Q3) In the Web 2.0 world,the value of a site increases ________.

A) over time

B) exponentially

C) as the investments in it increase

D) with users and use

Q4) What are the six characteristics of Enterprise 2.0?

Q5) What is disintermediation?

Q6) Strong relationships contribute the most to the growth of social networks.

A)True

B)False

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Chapter 9: Business Intelligence and Information Systems for Decision Making

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Sample Questions

Q1) The purpose of a ________ is to extract and clean data from operational systems and other sources,and to store and catalog that data for processing by BI tools.

A) data harvester

B) data center

C) data aggregator

D) data warehouse

Q2) ________ is information containing patterns,relationships,and trends.

A) Technical writing

B) Raw data

C) Business intelligence

D) Internal communication

Q3) Data that are critical for successful operations must be complete and accurate,however data that are only marginally necessary do not need to be.

A)True

B)False

Q4) Market-basket analysis is a data mining system.

A)True

B)False

Q5) Explain the curse of dimensionality.

Page 11

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Chapter 10: Information Systems Development

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Sample Questions

Q1) Which step in the SDLC process aims to eliminate obviously nonsensible projects?

A) Define system goals and scope.

B) Form the project team.

C) Assess project feasibility.

D) Plan the project.

Q2) Normal processing procedures for operations personnel are ________.

A) procedures to continue operations when the system fails

B) procedures for backing up data and other resources

C) procedures for using the system to accomplish business tasks

D) procedures for starting, stopping, and running the system

Q3) Software vendors usually bundle fixes of low-priority problems into ________.

A) patches

B) service packs

C) debuggers

D) system fixes

Q4) What are the main tasks that are performed during the system definition phase of the SDLC?

Q5) User involvement is redundant throughout the systems development process.

A)True

B)False

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Chapter 11: Information Systems Management

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Sample Questions

Q1) Which of the following is true for the various groups in an IS department?

A) The technology group manages individual computers, computer centers, networks, and communications media.

B) The development group monitors the user experience and responds to user problems.

C) The development group manages the process of creating new information systems.

D) The operations group investigates new information systems technologies and determines how the organization can benefit from them.

Q2) The operations group within the IT department may include programmers,test engineers,and technical writers.

A)True

B)False

Q3) Which of the following is NOT a responsibility of a systems analyst?

A) developing procedures

B) writing programs

C) determining system requirements

D) designing job descriptions

Q4) What are tangible and intangible benefits?

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Chapter 12: Information Security Management

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Sample Questions

Q1) ________ use(s)personal physical characteristics such as fingerprints,facial features,and retinal scans to verify users.

A) Passwords

B) Smart cards

C) Biometric authentication

D) Personal identification numbers

Q2) Which of the following is an example of a security threat resulting from malicious human activity?

A) an employee who misunderstands operating procedures

B) an employee who accidentally deletes customer records

C) an employee who inadvertently installs an old database on top of the current one

D) an employee who intentionally destroys data or other system components

Q3) An employee carelessly releases proprietary data to the media.This is a case of ________ resulting from ________.

A) loss of infrastructure; human error

B) unauthorized data disclosure; human error

C) loss of infrastructure; malicious activity

D) unauthorized data disclosure; malicious activity.

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Chapter 13: Improving Your Collaboration Skills

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Sample Questions

Q1) Collaboration skills are intrinsic to an individual and cannot be improved with practice.

A)True

B)False

Q2) Which of the following is true about collaborative teams?

A) Team members must come to respect and trust each other.

B) Enjoyment is essential to successful teamwork.

C) Members in a team must agree with one another's views.

D) A collaborative team will not face conflicts.

Q3) Collaboration always involves feedback and iteration.

A)True

B)False

Q4) Which of the following is the LEAST important collaborative driver for one-time,ad hoc workgroups?

A) content management

B) communication

C) workflow control

D) iterations

Q5) What are the two key elements of communication and how do they improve collaboration?

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Chapter 14: Using Collaboration Information Systems

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Sample Questions

Q1) Why should a team choose to use a collaboration information system?

Q2) Which of the following statements regarding Google Docs is true?

A) Google tracks document revisions, with brief summaries of changes made.

B) A Google account is not essential to edit Google Docs.

C) Google Docs is free to use, but an annual fee is charged for membership.

D) Microsoft Excel documents cannot be uploaded to Google Docs.

Q3) Which of the following is an example of synchronous communication?

A) email

B) voice mail

C) multiparty text chat

D) discussion forum

Q4) Explain version control with a simple example.

Q5) ________ tracks changes to documents and provides features and functions to accommodate concurrent work.

A) Version management

B) Workflow regulation

C) Workspace management

D) Content regulation

Q6) What is Microsoft SharePoint?

Q7) What is version management and why is it important?

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Chapter 15: Information Systems and Decision Making

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Sample Questions

Q1) An information system that computes the quantity of items to order for inventory is an example of an automated information system.

A)True

B)False

Q2) An unstructured decision process is one for which there is no agreed-on decision-making method.

A)True

B)False

Q3) Discuss the information systems that support decisions at various levels in an organization.

Q4) A formula for computing the reorder quantity of an item in inventory is an example of a structured decision process.

A)True

B)False

Q5) Data analysis applications can be used in the intelligence gathering phase of the decision-making process.

A)True B)False

Q6) Discuss the relationship between decision levels and decision processes.

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Chapter 16: Knowledge Management and Expert Systems

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Sample Questions

Q1) To create the system of rules,the development team interviews human experts in a particular domain.

A)True

B)False

Q2) Expert systems encode human knowledge in the form of If/Then rules that indicate that some action should be taken if a particular condition exists.

A)True

B)False

Q3) Which of the following is true for expert systems?

A) They are simple, rule-based systems that are easy to update.

B) They encode metadata in the form of If/Then rules.

C) The programs that process a set of rules are called expert systems portals.

D) The systems encode the knowledge of human experts.

Q4) Basic emails do not allow good control over shared content and should not be used for knowledge sharing in organizations.

A)True

B)False

Q5) How do expert systems benefit organizations? What are their disadvantages?

Q6) What factors inhibit employees from sharing knowledge?

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Chapter 17: Introduction to Microsoft Excel

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Sample Questions

Q1) In Excel,the option to change the page orientation is located on the ________ tab.

A) Page Layout

B) View

C) Review

D) Add-ins

Q2) The intersection of a row and a column on a spreadsheet is called a data point.

A)True

B)False

Q3) The rows in Excel spreadsheet are identified by letters,and the columns are identified by numbers.

A)True

B)False

Q4) In Microsoft Excel,most frequently used tools and selections appear under the ________ tab.

A) Data

B) Home

C) View

D) Add-ins

Q5) Explain spreadsheets.

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Chapter 18: Preparing a Computer Budget Using Excel

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Sample Questions

Q1) Which of the following is the best way to ensure that the address in a formula is not changed when it is copied or moved?

A) Use an absolute address to represent the formula.

B) Enable the lock formula option from the Data tab.

C) Select the "Protect Sheet" option from the Tools menu.

D) Use the function key F2 after copying or moving the formula.

Q2) Briefly describe the process for preparing a departmental IT budget.

Q3) A network interface card is not needed for wireless networks.

A)True

B)False

Q4) CD transfer rates are about 10 times faster than those for DVDs.

A)True

B)False

Q5) Which of the following is an example of a vertical market software?

A) Microsoft Office

B) Adobe Acrobat

C) AutoCad

D) Open Office

Q6) Briefly describe the variations in optical disks.

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Q7) What is the significance of the main memory in the functioning of a computer?

Chapter 19: Database Design

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Sample Questions

Q1) Once the users have validated and approved the data model,it is transformed into a

A) database design

B) requirement report

C) knowledge management system

D) data repository

Q2) In E-R diagrams,the attributes are represented with crow's feet.

A)True

B)False

Q3) The data model contains a description of the data.However,the model does not depict the relationships among the data.

A)True

B)False

Q4) In a classroom,each student can have multiple advisers.In a data model,this can be best represented by which of the following notations?

A) N:M relationship

B) N:N relationship

C) 1:N relationship

D) N:1 relationship

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Chapter 20: Using Microsoft Access 2010

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Sample Questions

Q1) In Microsoft Access,a report is created using a process similar to that for forms.

A)True

B)False

Q2) In Microsoft Access,users must drag the foreign key in one table to the primary key in another table to enforce a relationship.

A)True

B)False

Q3) Microsoft Access provides a default table display for entering the data.

A)True

B)False

Q4) In Microsoft Access,the description of fields is used to ________.

A) document the details of each field

B) define rules for how each field should behave

C) define how the fields should behave in case of exceptions

D) characterize the fields in terms of their data types

Q5) What steps must a database designer take before using a DBMS?

Q6) Microsoft Access can be used to process the SQL query language.

A)True

B)False

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Chapter 21: Using Excel and Access Together

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Q1) Importing data from Access to Excel is easily achieved by clicking on the Data tab and directing Excel to get the external data from Access.

A)True

B)False

Q2) Data can be transferred from Excel to Access by creating a(n)________,which is a subset of the cells in a worksheet that has a unique name.

A) specified label

B) individual data

C) named range

D) unique path

Q3) Delimited text files cannot be imported into either Excel or Access.

A)True

B)False

Q4) What are delimited text files?

Q5) When using Excel,spaces can be used to connect the words in range names. A)True

B)False

Q6) Explain the significance of using Access and Excel together.

Q7) How can you use Excel to graph Access data?

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Chapter 22: Remote, Nomadic, and Mobile Systems

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Sample Questions

Q1) Wireless hotspot hubs provide wireless connectivity to computers located in close proximity to the hub.

A)True

B)False

Q2) Client virtualization ________.

A) hosts multiple operating systems

B) creates a virtualized network addressing space within or across network subnets

C) completely abstracts logical storage from physical storage

D) enables users to run their desktop on different computers

Q3) A business traveler who accesses networks at work from a hotel or an airport lobby is using nomadic access.

A)True

B)False

Q4) With nomadic access,users access networks while travelling from site to site.

A)True

B)False

Q5) Define remote access.Give examples of the use of remote access systems.

Q6) Define nomadic and mobile access systems with an example.

Q7) List the consequences of communication at a distance.

Page 24

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Chapter 23: Functional Processes, Applications, and Systems

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Q1) ________ applications facilitate the production of goods.

A) Manufacturing

B) Forecasting

C) Order entry

D) Product-management

Q2) Which of the following is a function of operations applications?

A) tracking the order through fulfillment

B) creating and maintaining bill of materials

C) recording individual sales projections

D) tracking product interests of customers

Q3) Explain just-in-time (JIT)inventory policy.

Q4) A bill of materials (BOM)refers to the total budget of manufacturing a specific product.

A)True

B)False

Q5) Applications such as lead-tracking applications are information systems.

A)True

B)False

Q7) What are the major functions of accounting applications? Page 25

Q6) What are functional processes and functional applications?

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Chapter 24: Enterprise Resource Planning (ERP)Systems

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Q1) ERP vendors design application programs to be configurable so that development teams can alter them to meet customer requirements without changing program code.

A)True

B)False

Q2) Process blueprints are the inherent processes in an ERP solution that implement standard business processes.

A)True

B)False

Q3) When removing inconsistencies during the process of implementing an ERP system,one can correct misfits by modifying the ERP application.

A)True

B)False

Q4) Which of the following is the topmost ranked ERP vendor?

A) Epicor

B) SAP

C) Infor

D) Oracle

Q5) What is the primary purpose of ERP Systems?

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Chapter 25: Supply Chain Management

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Q1) What is a supply chain? What are the four drivers that are crucial to the success of supply chain?

Q2) All supply chains have distributors and retailers.

A)True

B)False

Q3) Which of the following statements about supply chains is correct?

A) Supply chains consist only of customers, retailers, distributors, manufacturers, and suppliers.

B) Not every supply chain has distributors and retailers.

C) Each element in the supply chain is connected to only one entity up and down.

D) The only source of revenue in a supply chain is the retailer.

Q4) 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.

Q5) Define supply chain profitability.How is it different from individual organizational profitability?

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Chapter 26: Processing Social Capital: Facebook, Twitter, and User-Generated Content (UGC)

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Q1) A(n)________ group cannot be found by searching,and members must be invited to join.

A) by invitation

B) private C) public

D) exclusive

Q2) Social networking applications run on users' servers.

A)True

B)False

Q3) Organizations that use social networking vendors despite their capability to develop their own social networking Web site are not vulnerable to the success and policies of these vendors.

A)True

B)False

Q4) To an organization,the strength of a relationship is the likelihood that the person or other organization in the relationship will do something that benefits the organization.

A)True

B)False

Q5) What is a social networking information system?

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Chapter 27: Database Marketing

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Q1) The RFM score is obtained by ranking the customers on the basis of pricing patterns.

A)True

B)False

Q2) Which of the following is a way of analyzing and ranking customers according to their purchasing patterns?

A) composite forecasts

B) RFM analysis

C) Cooke method

D) Delphi technique

Q3) A shop finds that the M score of a customer is 1.This means that the customer has paid high dollar value to the shop.

A)True

B)False

Q4) What is a market-basket analysis?

Q5) A common business application of decision trees is to classify loans by likelihood of default.

A)True

B)False

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Chapter 28: Reporting Systems and OLAP

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Q1) What is the difference between push and pull reports?

Q2) Ordinal data is used to describe reports,users,groups,roles,events,and other entities involved in the reporting activity.

A)True

B)False

Q3) What are dimensional databases?

A) Databases storing detailed data about organizational operations.

B) Databases that are structured to support OLAP processing.

C) Databases consisting of data developed by individual end-users.

D) Databases that are located online and cover millions of systems.

Q4) An administrator in a company defines who receives what reports,when,and by what means.These functions performed by the administrator are referred to as report delivery.

A)True

B)False

Q5) Describe online analytical processing.

Q6) Each OLAP cube in a report is a characteristic of the measures in the OLAP report.

A)True

B)False

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Chapter 29: Geographic Information Systems

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Sample Questions

Q1) The Military Grid Coordinate System (MGRS)is divided into ________.

A) territories

B) dominions

C) zones

D) sections

Q2) Who are involved in the capturing of geospatial data?

A) field personnel

B) business intelligence users

C) developers

D) operations personnel

Q3) Explain in brief how GIS maps are constructed.

Q4) A datum is a set of elevations based on particular values of the earth's ________.

A) circumference

B) diameter

C) area

D) radii

Q5) A choropleth map shows themes about geographic locations.

A)True

B)False

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Chapter 30: Business Process Management

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Q1) Which of the following statements is true of encapsulation?

A) It is a design practice.

B) It cannot be performed by human beings.

C) It implements the change less consistently than other processes.

D) It can only be performed by computer systems.

Q2) If the customer's request for special terms is disapproved the cost of checking availability and credit is wasted.

A)True

B)False

Q3) The two major dimensions of business process effectiveness are performance and cost.

A)True

B)False

Q4) An activity that conforms to SOA principles is called a ________.

A) COBIT

B) service provider

C) encapsulator

D) XML schema

Q5) How does BPM relate to SDLC?

Q6) How do process designers improve business processes?

Page 33

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Chapter 31: Systems Development Project Management

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Q1) The biggest challenge in planning large-scale systems is scheduling.Describe the three approaches organizations take to address this challenge.

Q2) What are the biggest challenges for managing a large-scale systems development project?

Q3) A(n)________ is a hierarchy of the tasks required to complete a project.

A) baseline

B) work-breakdown structure

C) reliable analysis

D) V-Model

Q4) Which of the following is a technique that stipulates phases and processes for constructing information systems,but does not address the management of large-scale projects?

A) SDLC

B) PMP

C) PMI

D) ANSI

Q5) The baseline WBS can be used for monitoring the project.

A)True

B)False

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Chapter 32: Outsourcing

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Q1) There is no easy exit from an outsourcing agreement.

A)True

B)False

Q2) Outsourcing,by definition,refers to the use of a foreign vendor.

A)True

B)False

Q3) Which of the following is a disadvantage of outsourcing services?

A) no easy exit

B) inability to ensure a certain level of quality

C) takes up too much management time

D) high implementation risk

Q4) Instead of buying and maintaining its own computers,Timber and Tools has leased time from a cloud vendor.This is an example of how ________ can be outsourced.

A) computer hardware

B) software

C) entire applications

D) entire business functions

Q5) Some companies choose to outsource to save management time and attention. A)True

B)False

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Chapter 33: International MIS

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Q1) Which of the following is true about the issues to be addressed when localizing a computer program?

A) When translating the user interface for a program, the entire user interface, except the icons, will need to be changed.

B) Programming techniques can be used to simplify and reduce the cost of localization.

C) Forms and reports should be localized in a manner that does not necessitate redesigning the entire document.

D) The help text should always be maintained in English.

Q2) Information systems support just-in-time (JIT)inventory techniques.

A)True

B)False

Q3) If a distributed database contains copies of the same data,it is called a ________ database.

A) mirrored

B) redundant

C) replicated

D) partitioned

Q4) What are the challenges of international project management?

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