Digital Business Management Practice Exam
Course Introduction
Digital Business Management explores the principles, strategies, and tools essential for successfully operating and growing organizations in todays digitally driven market environment. The course covers topics such as the digital transformation of traditional business models, the impact of emerging technologies, e-commerce, digital marketing, online customer engagement, and data-driven decision making. Students will analyze case studies, evaluate digital strategies, and develop skills to manage digital innovation, optimize business processes, and create value in a rapidly evolving digital economy.
Recommended Textbook Management Information Systems Global 14th Edition by Kenneth C. Laudon
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Page 2
Chapter 1: Information Systems in Global Business Today
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Sample Questions
Q1) The ________ is a service provided by the Internet that uses universally accepted standards for storing, retrieving, formatting, and displaying information in a page format.
Answer: World Wide Web/Web/WWW
Q2) Developing a new product, hiring a new employee, and fulfilling an order are examples of business processes.
A)True
B)False
Answer: True
Q3) Thomas Friedman's declaration that the world was now "flat" meant that
A) the Internet has reduced the economic advantages of developed countries.
B) globalization is starting to offer less advantage to large corporations.
C) the global economy is increasingly commanded by fewer and larger corporations.
D) global capitalism is homogenizing culture and business practices throughout the world.
E) global shipping rates have reached historic lows.
Answer: A
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Chapter 2: Global E-Business and Collaboration
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Sample Questions
Q1) Business ________ applications allow managers to interactively work with current and historical data to discover patterns and trends to help their decision.
Answer: intelligence
Q2) A(n) ________ is a set of logically related activities for accomplishing a specific business result.
Answer: business process
Q3) An ESS's digital ________ displays an array of charts and graphs of a business's key performance indicators.
Answer: dashboard
Q4) What is the most important function of an enterprise application?
A) increasing speed of communicating
B) enabling business functions and departments to share information
C) enabling a company to work collaboratively with customers and suppliers
D) enabling cost-effective e-business processes
E) enabling inventory and supply chain management
Answer: B
Q5) The people for whom information systems applications are developed are referred to as ________.
Answer: end users
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Chapter 3: Information Systems, Organizations, and Strategy
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Sample Questions
Q1) Under Mintzberg's classification of organizational structure, the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals falls under the category of
A) entrepreneurial structures.
B) divisionalized bureaucracies.
C) professional bureaucracies.
D) adhocracies.
E) machine bureaucracies.
Answer: C
Q2) Which of the following is not a major feature of organizations that impacts the use of information systems?
A) business processes
B) environments
C) goals
D) agency costs
E) leadership styles
Answer: D
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Page 5
Chapter 4: Ethical and Social Issues in Information Systems
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Q1) Web beacons are tiny, invisible software programs hidden in e-mail messages and Web pages that are used to track and report a user's online behavior.
A)True
B)False
Q2) Cookies created during Web site visits are stored
A) on the Web site's server.
B) on the user's computer.
C) on servers owned by advertising networks.
D) in the browser's application settings.
E) nowhere, because they are only used during a visit and are discarded once a visitor leaves the Web site.
Q3) Liability is a feature of political systems and allows individuals to recover damages done to them by others.
A)True
B)False
Q4) Any intellectual work product that isn't based on public knowledge can be classed as a trade secret.
A)True
B)False
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Chapter 5: It Infrastructure and Emerging Technologies
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Sample Questions
Q1) The ________ PC, becoming the standard PC in the Personal Computer Era, uses the Windows operating system software on a computer with an Intel microprocessor.
A) Wintel
B) Dell
C) IBM
D) Altair
E) Digital Equipment Corporation
Q2) A small design agency you are consulting for will be creating client Web sites and wants to purchase a Web server so they can host the sites themselves. How will you advise them on this purchase?
Q3) Running a Java program on a computer requires
A) a Java Virtual Machine to be installed on that computer.
B) a Java Virtual Machine to be installed on the server hosting the Java applet.
C) a miniature program to be downloaded to the user's computer.
D) no specialized software, as Java is platform-independent.
E) the Mozilla Firefox browser and no other browsers.
Q4) List and describe four services that comprise IT infrastructure, beyond physical devices and software applications.
Q5) Distinguish between cloud computing, green computing, and quantum computing.
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Chapter 6: Foundations of Business Intelligence: Databases and Information Management
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Sample Questions
Q1) In place of application server software to allow a Web server to communicate with a back-end database, you can use
A) CGI.
B) HTML.
C) Java.
D) SQL.
E) NoSQL.
Q2) You can manipulate data on a Web server by using a CGI script.
A)True
B)False
Q3) In a client/server environment, a DBMS is located on a dedicated computer called a Web server.
A)True
B)False
Q4) An attribute is a characteristic or quality used to describe a particular entity.
A)True
B)False
Q5) List at least three conditions that contribute to data redundancy and inconsistency.
Page 8
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Chapter 7: Telecommunications, the Internet, and Wireless Technology
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Q1) RFID technology is being gradually replaced by less costly technologies such as WSNs.
A)True
B)False
Q2) The total amount of digital information that can be transmitted through any telecommunications medium is measured in
A) bps.
B) Hertz.
C) baud.
D) gigaflops.
E) RPMs.
Q3) What technology allows people to have content pulled from Web sites and fed automatically to their computers?
A) FTP
B) RSS
C) HTTP
D) Bluetooth
E) IPv6
Q4) What is Web 3.0, and how do you think Web 3.0 developments could impact businesses?
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Chapter 8: Securing Information Systems
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Sample Questions
Q1) ________ is malware that hijacks a user's computer and demands payment in return for giving back access.
A) A Trojan horse
B) Ransomware
C) Spyware
D) A virus
E) An evil twin
Q2) The dispersed nature of cloud computing makes it difficult to track unauthorized access.
A)True
B)False
Q3) Biometric authentication
A) is inexpensive.
B) is used widely in Europe for security applications.
C) can use a person's voice as a unique, measurable trait.
D) only uses physical measurements for identification.
E) only uses biographical details for identification.
Q4) Is the cloud a safer and more secure computing environment than an in-house network?
Why or why not?
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Chapter 9: Achieving Operational Excellence and Customer
Intimacy: Enterprise Applications
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Sample Questions
Q1) Plant Away is an Oregon-based retailer and distributor of trees and shrubs. They have hundreds of smaller nurseries based around the country that grow the plant stock. The majority of their business is conducted online. Consumers purchase typically small quantities of products online and Plant Away coordinates the shipping from the most appropriate nursery. What unique problems might you anticipate they have in their supply chain?
What might remedy these problems?
Q2) The bullwhip effect describes consistency and continuity in demand for a product as it passes from one entity to the next across the supply chain. A)True
B)False
Q3) In a pull-based model of SCM systems, production master schedules are based on forecasts of demand for products. A)True B)False
Q4) Enterprise systems require fundamental changes in the way the business operates. A)True B)False
Q5) Identify two supply chain models. Which is better?
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Chapter 10: E-Commerce: Digital Markets, Digital Goods
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Sample Questions
Q1) What methods could a portal use to generate revenue? Which do you think might be most successful, and why?
Q2) ________ refers to businesses selling goods and services electronically to individuals.
A) B2C e-commerce
B) Social e-commerce
C) C2C e-commerce
D) Disintermediation
E) M-commerce
Q3) All of the following are unique features of e-commerce technology, except A) personalization/customization.
B) interactivity.
C) universality.
D) richness.
E) global reach.
Q4) Intellectual property refers to all forms of human expression, both tangible and intangible.
A)True
B)False
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Chapter 11: Managing Knowledge
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Sample Questions
Q1) ________ knowledge exists in formal documents, as well as in formal rules that organizations derive by observing experts and their decision-making behaviors.
A) Unstructured
B) Tacit
C) Management
D) Explicit
E) Semi-structured
Q2) Identify the three major types of knowledge management systems. Provide two examples of each.
Q3) About ________ percent of the United States GDP is produced by the knowledge and information sectors.
A) 15
B) 25
C) 45
D) 65
E) 85
Q4) Expert systems are the primary tools used for knowledge discovery.
A)True
B)False
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Chapter 12: Enhancing Decision Making
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Q1) GDSS
A) require a small number of attendees in order to maintain high levels of productivity.
B) enable increasing a meeting size without reducing productivity.
C) include specific procedures for priority ranking the order in which participants can respond.
D) utilize shared desktop computers to foster collaboration.
E) are designed specifically for decision making by people working as a group in the same location.
Q2) Which type of information system uses data visualization technology to analyze and display data for planning and decision making in the form of digitized maps?
A) GIS
B) DSS
C) location analytics
D) Executive support systems
E) GDSS
Q3) What is the business value of a DSS?
Q4) What is a GIS?
Describe at least three ways in which a GIS could be used by modern business.
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Chapter 13: Building Information Systems
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Sample Questions
Q1) What qualities of object-oriented development make this method especially suitable for Internet applications?
Q2) Which process develops a detailed description of the functions that a new information system must perform?
A) feasibility study
B) requirements analysis
C) systems design
D) test plan development
E) management plan
Q3) When systems are created rapidly, without a formal development methodology
A) end users can take over the work of IT specialists.
B) the organization quickly outgrows the new system.
C) hardware, software, and quality standards are less important.
D) testing and documentation may be inadequate.
E) IT specialists dominate the design of the system.
Q4) The three main platforms for mobile apps are iPhone/iPad, iOS, and Android.
A)True
B)False
Q5) Identify and describe each of the five systems' development approaches.
Q6) Discuss the role and influence the user plays in software development.
Page 15
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Chapter 14: Managing Projects
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Q1) In working with ROPMs (real option pricing models) and options valuation, a call option is a(n)
A) obligation to purchase an asset at a later date at a fixed price.
B) obligation to either purchase or sell an asset at a later date at a strike price.
C) right to purchase an asset at a later date at a strike price.
D) right to purchase or sell an asset at a later date at a fixed price.
E) an obligation to sell an asset at a later date at a fixed price.
Q2) You have been hired to implement an enterprise system that will automate much of the billing and accounting work for a statewide HVAC services company. Which of the following would you prepare to describe how the new system will affect a firm's structure and operations?
A) information systems plan
B) internal integration report
C) sociotechnical design report
D) organizational impact analysis
E) strategic planning document
Q3) A user-designer ________ occurs when there is a difference in background, interests and priorities that impedes discussion and problem solving among users and IS specialists.
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Page 16
Chapter 15: Managing Global Systems
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Sample Questions
Q1) Which of the following is not one of the main organizational issues facing firms who are seeking to globalize?
A) choosing a global strategy
B) organizing the global business structure
C) organizing the systems management
D) defining the global environment
E) organizing the business
Q2) While private networks have guaranteed service levels and better security than the Internet, the Internet is the primary foundation for global corporate networks when lower security and service levels are acceptable.
A)True
B)False
Q3) Franchise companies have typically had ________ systems.
A) duplicated
B) centralized
C) networked
D) decentralized
E) autonomous
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