Business Information Systems
Textbook Exam Questions
Course Introduction
Business Information Systems explores the integration of information technology within business environments, emphasizing how digital tools support organizational objectives, improve efficiency, and enable data-driven decision-making. The course covers fundamental concepts such as information systems types, system development life cycles, database management, networking, enterprise resource planning, cybersecurity, and the strategic role of IT in business processes. Students will examine real-world cases and emerging trends, gaining the skills necessary to analyze, design, and manage technology solutions that drive business value and competitive advantage.
Recommended Textbook Management Information Systems 12th Edition by Kenneth C. Laudon
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Chapter 1: Information Systems in Global Business Today
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Q1) Which of the following objectives best describes the business strategy behind the development of smart grid initiatives by power companies, as discussed in the chapter case?
A) operational excellence
B) new products and services
C) competitive advantage
D) customer support
Answer: A
Q2) This chapter discusses how each organization has its own culture and sets of values shared by most of its members. What kind of shared values might you find at a law firm? Answer: Shared values at a law firm might be: The legal system works, the legal system is fair, lawyers help people, and people need help with the legal system because it is complicated.
Q3) Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach.
A)True
B)False
Answer: False
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Chapter 2: Global E-Business and Collaboration
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Q1) Executive support systems are information systems that support the
A) long-range planning activities of senior management.
B) knowledge and data workers in an organization.
C) decision-making and administrative activities of middle managers.
D) day-to-day processes of production.
Answer: A
Q2) A(n) ________ system collects data from various key business processes and stores the data in a single, comprehensive data repository, usable by other parts of the business.
A) transaction
B) enterprise
C) automatic reporting
D) management information
Answer: B
Q3) A(n) ________ is a set of logically related activities for accomplishing a specific business result.
Answer: business process
Q4) ________ are representatives of departments outside of the information systems group for whom applications are developed.
Answer: End users
Page 4
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Chapter 3: Information Systems, Organizations, and Strategy
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Q1) The interaction between information systems and organizations is influenced A) primarily by the decision making of middle- and senior-managers.
B) by many factors, including structure, politics, culture, and environment.
C) by two main microeconomic forces: capital and labor.
D) primarily by the organization's business processes and culture.
Answer: B
Q2) A(n) ________ is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market.
Answer: value web
Q3) New technologies that radically change the business landscape and environment are referred to as ________.
Answer: disruptive
Q4) In a demonstration of network economics, the more people that use Adobe software and related products, the greater the value of the software.
A)True
B)False
Answer: True
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Chapter 4: Ethical and Social Issues in Information Systems
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Q1) Web ________ are embedded in e-mails and Web pages to monitor user behavior at the Web site or sending e-mail.
Q2) Advances in data storage have made routine violation of individual privacy more difficult.
A)True
B)False
Q3) A classic ethical dilemma is the hypothetical case of a man stealing from a grocery store in order to feed his starving family. If you used the Utilitarian Principle to evaluate this situation, you might argue that stealing the food is
A) acceptable, because the grocer suffers the least harm.
B) acceptable, because the higher value is the survival of the family.
C) wrong, because the man would not want the grocery to steal from him.
D) wrong, because if everyone were to do this, the concept of personal property is defeated.
Q4) One of the difficulties of patent protection is
A) that only the underlying ideas are protected.
B) digital media cannot be patented.
C) preventing the ideas from falling into public domain.
D) the years of waiting to receive it.
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Chapter 5: It Infrastructure and Emerging Technologies
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Q1) Your firm needs to implement electronic timesheet software and needs to keep within a small budget. Which of the following would be the most costly method of implementing this new software?
A) purchasing a software package
B) programming the new software in-house
C) leasing the software over the Internet
D) outsourcing the software programming to an overseas vendor
Q2) Hardware and software acquisition costs account for about ________ percent of TCO.
A) 20
B) 40
C) 60
D) 80
Q3) ________ takes place when a firm contracts custom software development or maintenance of existing legacy programs to outside firms.
Q4) Autonomic computing is implemented primarily with enterprise or ISP servers.
A)True
B)False
Q5) List and describe the seven major components of IT infrastructure.
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Chapter 6: Foundations of Business Intelligence: Databases and Information Management
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Q1) A data warehouse is typically comprised of several smaller data marts.
A)True
B)False
Q2) The project operation
A) combines relational tables to provide the user with more information than is otherwise available.
B) creates a subset consisting of columns in a table.
C) organizes elements into segments.
D) identifies the table from which the columns will be selected.
Q3) In a Web-based database, middleware is used to transfer information from the organization's internal database back to the Web server for delivery in the form of a Web page to the user.
A)True
B)False
Q4) Which of the following is NOT a method for performing a data quality audit?
A) surveying entire data files
B) surveying samples from data files
C) surveying data definition and query files
D) surveying end users about their perceptions of data quality
Q5) List and describe three main capabilities or tools of a DBMS.
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Chapter 7: Telecommunications, the Internet, and Wireless Technology
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Q1) RFID has been exceptionally popular from the technology's inception because of its low implementation costs.
A)True
B)False
Q2) Which of the following statements is True?
A) GSM is the primary U.S. digital cellular standard.
B) CDMA's strength is in its international roaming capabilities.
C) CDMA randomly assigns users to a range of frequencies over time.
D) GSM was developed by the military during World War II.
Q3) Which of the following standards is most appropriate for creating a PAN?
A) WiMax
B) IEEE 802.11b
C) WiFi
D) Bluetooth
Q4) Telephone networks are fundamentally different from computer networks.
A)True
B)False
Q5) ________ is the dominant LAN standard at the physical network level.
Q7) How does packet switching work? Page 9
Q6) A(n) ________ is software for locating and managing stored Web pages.
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Chapter 8: Securing Information Systems
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Q1) The most common type of electronic evidence is
A) voice mail.
B) spreadsheets.
C) instant messages.
D) e-mail.
Q2) Electronic evidence on computer storage media that is not visible to the average user is called ________ data.
A) defragmented
B) ambient
C) forensic
D) fragmented
Q3) High-availability computing is also referred to as fault tolerance.
A)True
B)False
Q4) Why is software quality important to security? What specific steps can an organization take to ensure software quality?
Q5) Define a fault-tolerant computer system and a high-availability computer system. How do they differ? When would each be used?
Q6) What is a digital certificate? How does it work?
Page 11
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Chapter 9: Achieving Operational Excellence and Customer
Intimacy:
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Q1) To minimize the expense of implementing an enterprise system, businesses can opt to curtail the customization of an enterprise package and instead change business processes to match the software.
A)True
B)False
Q2) All of the following statements about enterprise applications are True except for A) Enterprise applications are more successfully implemented when an organization has prepared for organizational change.
B) Once you have purchased and implemented a vendor's enterprise system, it is much less expensive to switch vendors.
C) The total implementation cost of a large system runs into millions of dollars. D) Enterprise applications are based on organization-wide definitions of data.
Q3) Analyzing customer buying patterns is an example of A) CLTV.
B) analytical CRM.
C) operational CRM.
D) demand planning.
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Page 12
Chapter 10: E-Commerce: Digital Markets, Digital Goods
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Q1) Which of the following businesses utilizes the content provider Internet business model?
A) Amazon.com
B) eBay.com
C) CNN.com
D) Motocross.com
Q2) Online ________ marketing is like traditional word-of-mouth marketing except that it is spread via online communities.
Q3) All previous mass media in modern history, including the printing press, used a broadcast model where content is created in a central location by experts.
A)True
B)False
Q4) Which of the following is not a recent development in e-commerce?
A) Wireless Internet connections grow rapidly.
B) Social networking sites become a new platform for e-commerce.
C) The music recording industry is disrupted as music creation and distribution become decentralized.
D) Online entertainment business models surge.
Q5) A(n) ________ is another term for a private industrial network.
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Chapter 11: Managing Knowledge
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Q1) An inference engine is
A) a strategy for searching the rule base in case-based reasoning.
B) the programming environment of an expert system.
C) a method of organizing expert system knowledge into chunks.
D) a strategy used to search through the rule base in an expert system by forward chaining or backward chaining.
Q2) Investment workstations
A) provide engineers, designers, and factory managers with precise control over industrial design and manufacturing.
B) provide an important source of expertise for organizations.
C) allow groups to work together on documents.
D) are used in the financial sector to analyze trading situations instantaneously and facilitate portfolio management.
Q3) 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
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Chapter 12: Enhancing Decision Making
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Q1) The decision to approve a capital budget is an example of a(n) ________ decision.
A) semistructured
B) unstructured
C) structured
D) undocumented
Q2) A key business decision in your sporting goods manufacturing company is determining what suppliers to use for your raw materials. How can you determine if a manager in charge of selecting suppliers is making the best choice?
Q3) Backward sensitivity analysis software is used for
A) supply chain optimization.
B) historical what-if analysis.
C) goal seeking.
D) reverse forecasting.
Q4) Statistical models, data mining, OLAP, and production reports comprise one of the main elements of the BI environment referred to as the business analytics ________.
Q5) A(n) ________ decision is repetitive and routine, for which known procedures provide solutions.
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Chapter 13: Building Information Systems
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Q1) Compared to the use of proprietary components, Web services promise to be less expensive and less difficult to implement because of
A) their ability to integrate seamlessly with legacy systems.
B) the use of universal standards.
C) the ubiquity of the Internet.
D) the ability to reuse Web services components.
Q2) A systems building approach in which the system is developed as successive versions, each version reflecting requirements more accurately, is described to be
A) end-user oriented.
B) iterative.
C) object-oriented.
D) agile.
Q3) The process of creating workable information systems in a very short period of time is called
A) RAD.
B) JAD.
C) prototyping.
D) B and C.
Q4) Discuss the role and influence the user plays in software development.
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Chapter 14: Managing Projects
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Q1) Real Options Pricing Models (ROPMs) value systems projects similar to ________.
Q2) Counterimplementation refers to a deliberate strategy to thwart the implementation of an information system or an innovation in an organization.
A)True
B)False
Q3) Differentiate between intangible and tangible benefits and list three examples of each. In what types of systems are intangible benefits more predominant?
Q4) Which of the following types of projects is most likely to fail?
A) integration of an third-party automated payment system
B) replacement of middleware with Web services for legacy application integration
C) a business process redesign project that restructures workflow and responsibilities
D) redesigning a user interface to an online investment site
Q5) User concerns and designer concerns are usually the same at the beginning of the project but may diverge later as the system is built.
A)True
B)False
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Chapter 15: Managing Global Systems
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Q1) General challenges and obstacles to global business systems are typified by A) different technology standards, shortages of skilled consultants, and social expectations.
B) brand-name expectations, language differences, and commercial regulations.
C) different work hours, transborder data and privacy laws, and different technology standards.
D) different communications standards, language differences, and network reliability.
Q2) Globalization means that companies can be less concerned with the laws governing the movement of information.
A)True
B)False
Q3) The global ________ created by television, the Internet, and other globally shared media permits different peoples around the world to develop common expectations and values.
Q4) Accounting practices can vary significantly from country to country. A)True
B)False
Q5) How do cultural, legal, political, and social expectations affect global business?
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