Information Technology in Business Study Guide Questions
Course Introduction
This course explores the critical role of information technology (IT) in modern business environments, emphasizing how digital tools and systems support decision-making, streamline operations, and foster innovation. Students will examine key IT concepts such as data management, networking, enterprise systems, cloud computing, and cybersecurity within a business context. By analyzing real-world case studies and engaging in hands-on projects, learners will develop the skills required to leverage information technology strategically to achieve organizational goals and gain a competitive edge in the digital economy.
Recommended Textbook
Experiencing MIS 3rd Edition by David M. Kroenke
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Page 2
Chapter 1: The Importance of MIS
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Sample Questions
Q1) What is a marketable skill?
Answer: It used to be that one could name particular skills,such as computer programming,tax accounting,or marketing as examples of marketable skills.But today,because of Moore's Law,because the cost of data storage and data communications is essentially zero,any routine skill can and will be outsourced to the lowest bidder.
One has to develop strong non-routine cognitive skills to be more successful and such skills are called marketable skills.Abstract reasoning,systems thinking,collaboration,and ability to experiment are marketable skills.
Q2) In a grocery store,the clerk scans the UPC code on an item,which is transmitted to the computer.The actual scanner device is an example of the ________ component of an IS.
A) hardware
B) software
C) data
D) procedures
Answer: A
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Chapter 2: Business Processes, Information, and Information Systems
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Sample Questions
Q1) ________ is the perceived difference between what is and what ought to be.
A) A problem
B) Egocentric thinking
C) Empathetic thinking
D) Cognition
Answer: A
Q2) The quality of our thinking is a large part of the quality of the information system we use,especially for unstructured processes.
A)True
B)False
Answer: True
Q3) Relevant information is information that directly pertains to both the context and to the subject it references.
A)True
B)False
Answer: True
Q4) 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) Which of the following is an example of a competitive strategy employed by a firm?
A) increasing the price of its product when raw material prices increase
B) laying off staff in order to cut down costs during a recession period
C) advertising its products nationwide like its competitor organizations
D) launching a unique product targeted at a section of consumers
Answer: D
Q2) Two strength factors that relate to all three competitive forces are ________ and customer loyalty.
A) market forces
B) nature of products
C) customer satisfaction
D) switching costs
Answer: D
Q3) The strength of bargaining power forces does not depend on the availability of substitutes
A)True
B)False
Answer: False
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Chapter 4: Hardware and Software
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Sample Questions
Q1) Which of the following is considered to be input hardware?
A) keyboard
B) video display
C) speakers
D) plotter
Q2) Saving your work frequently is advised to tackle the issue of memory volatility.
A)True
B)False
Q3) When contents of the memory are lost when the power is off,the memory is said to be ________.
A) cached
B) volatile
C) random
D) swapped
Q4) ________ software is installed in special,read-only memory in devices like printers or communication devices.
A) Firmware
B) Instruction set
C) Vertical-market
D) Horizontal-market
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Chapter 5: Database Processing
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Sample Questions
Q1) Pure database data in raw form are most pertinent and useful.
A)True
B)False
Q2) A(n)________ is an assembly of forms,reports,queries,and application programs that process a database.
A) SQL server
B) metadata
C) database management system
D) database application system
Q3) The bulk of databases in the personal DBMS category have multiple users.
A)True
B)False
Q4) What are relational databases?
Q5) The ________ problem is unique to a multiuser database processing.
A) data integrity
B) redundancy
C) lost-update
D) scrambled report
Q6) Describe the usefulness of metadata.
Q7) What are personal DBMS products?
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Chapter 6: Data Communications
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Sample Questions
Q1) What are the three important functions of an ISP?
Q2) One very common use of FTP is to ________.
A) maintain Web sites
B) transmit emails
C) format responses
D) implement protocol.
Q3) A(n)________ is a unique name that is affiliated with a public IP address.
A) tag
B) protocol
C) domain name
D) assigned name
Q4) Explain Transmission Control Protocol (TCP).
Q5) The WNIC devices connect to a(n)________,which is the component of the LAN device that processes wireless traffic and communicates with the wired switch.
A) router
B) PSDN
C) optical fibre cable
D) access point
Q6) What are cable modems?
Q7) What is the IP protocol architecture?
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Chapter 7: Business Process Management
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Sample Questions
Q1) Contrary to popular belief,isolation of departmental applications cannot be held responsible for disjointed business processes.
A)True
B)False
Q2) 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
Q3) Workgroup information systems that support a particular department are sometimes called functional information systems.
A)True
B)False
Q4) Describe enterprise application integration.
Q5) When allowing the duplication to go on,each department must be mindful that they are processing a shared resource.
A)True
B)False
Q6) What problems do information silos cause?
Page 9
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Chapter 8: E-Commerce, Web 20, and Social Networking
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Sample Questions
Q1) Managing prices by direct interaction with the customer yields better information than managing prices by watching competitors' pricing.
A)True
B)False
Q2) Which of the following was a supporting technology of pre-Internet systems?
A) EDI
B) SOA
C) HTML
D) Flash
Q3) Using e-commerce to buy directly from the manufacturer eliminates the middlemen in the supply chain.Which of the following terms best explains this elimination?
A) deliberation
B) mashup
C) clearinghouse
D) disintermediation
Q4) What are the six characteristics of Enterprise 2.0?
Q5) What is an e-commerce auction? Give an example of an e-commerce company.
Q6) What is Social CRM?
Q7) How is e-commerce related to price elasticity?
10
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Chapter 9: Business Intelligence and Information Systems for Decision Making
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Sample Questions
Q1) Which of the following is a common unsupervised data-mining technique?
A) cluster analysis
B) regression analysis
C) neural networking
D) market-basket analysis
Q2) 1,000,000 bytes equal one gigabyte.
A)True
B)False
Q3) WhyMe@GuessWhoIAM.org is an example of ________.
A) dirty data
B) coarse data
C) inconsistent data
D) fine data
Q4) Explain clickstream data.
Q5) Problematic data are termed as ________.
A) rough data
B) clickstream data
C) granular data
D) dirty data
Q6) What is a business intelligence system? Page 11
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Chapter 10: Information Systems Development
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Sample Questions
Q1) Beyond a workgroup of four or five people,diseconomies of scale begin to take over.
A)True
B)False
Q2) Explain how diseconomies of scale can affect systems development.
Q3) All commercial software products are shipped with known failures.
A)True
B)False
Q4) What are the tasks of system maintenance?
Q5) What are the main tasks that are performed during the system definition phase of the SDLC?
Q6) 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
Q7) Testing is often called product quality assurance (PQA).
A)True
B)False
Q8) What is a test plan?
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Chapter 11: Information Systems Management
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Sample Questions
Q1) How does the IS department protect infrastructure and data?
Q2) Intangible benefits are those for which it is impossible to compute a dollar value.
A)True
B)False
Q3) A ________ monitors,maintains,fixes,and tunes computer networks.
A) technical writer
B) network programmer
C) PQA test engineer
D) network administrator
Q4) Describe the development group of a firm's IS department.
Q5) 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
Q6) What are tangible and intangible benefits?
Q7) Who coined the term 'agile enterprise' and what did they mean by it?
Q8) How can one justify IS and IT projects?
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Chapter 12: Information Security Management
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Sample Questions
Q1) Organizations should protect sensitive data by storing it in ________ form.
A) digital
B) standardized
C) encrypted
D) authenticated
Q2) Smart cards are convenient and easy to use since they don't require a PIN number for authentication.
A)True
B)False
Q3) Senior management has two critical security functions: overall policy and risk management.
A)True
B)False
Q4) ________ 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
Q5) List some important malware safeguards.
Page 15
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Chapter 13: Improving Your Collaboration Skills
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Sample Questions
Q1) A workflow is a schedule that provides time limits for each task without specifying an order of performing them.
A)True B)False
Q2) Personal attacks are a part of feedback in a successful team and should be encouraged.
A)True B)False
Q3) A team leader who expects and welcomes conflict can reduce collaboration within a team.
A)True
B)False
Q4) According to Katzenbach and Smith,a team should have ________.
A) a large number of people who are mutually accountable
B) people with complementary skills
C) an equal number of managers and workers
D) people with individual excellence in a common field
Q5) Define a team.What are the characteristics of an effective team?
Q6) What is collaboration? What are the critical drivers of collaboration?
Q7) Describe the role of workflow control in achieving collaboration.
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Chapter 14: Using Collaboration Information Systems
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Sample Questions
Q1) Which of the following techniques is used when one team member creates a list of questions and asks other members to respond?
A) multiparty text chat
B) team survey
C) social networking
D) discussion forum
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) Synchronous communication is defined as ________.
A) communication between similar people and groups in an organization
B) communication between people working in the same department
C) internal communication between the members of a specific group
D) communication that occurs when all team members meet at the same time
Q4) Version management systems provide version control.
A)True
B)False
Q5) What is Microsoft SharePoint?
Page 17
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Chapter 15: Information Systems and Decision Making
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Sample Questions
Q1) Unstructured decision-making is usually supported by ________ information systems.
A) managerial
B) operational
C) augmented
D) automated
Q2) What is the difference between automated and augmentation information systems? How are these systems related to the decision-making processes?
Q3) Strategic decisions are supported by executive information systems.
A)True
B)False
Q4) Which of the following questions is an example of an operational decision?
A) Should we have another manufacturing center?
B) How many square feet of warehouse space do we need for the coming year?
C) How many engineers should we assign to the project?
D) How many widgets should we order from the vendor?
Q5) Predicting future trends in the economy is an example of unstructured decision making.
A)True
B)False
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Chapter 16: Knowledge Management and Expert Systems
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Sample Questions
Q1) Basic emails do not allow good control over shared content and should not be used for knowledge sharing in organizations.
A)True
B)False
Q2) As blogs are informal and open-ended,they are not an effective form of knowledge-sharing.
A)True
B)False
Q3) What are content management systems? How do they differ from operational document systems?
Q4) Content management systems cannot be used to track information contained in graphics.
A)True
B)False
Q5) Which of the following statements is true about podcasts?
A) Podcasts cannot be used to share video and audio.
B) Podcasts cannot be used along with blogs, discussion boards, etc.
C) Podcasts are usually short, and cannot explore many dimensions of a situation.
D) Podcasts are open-ended information systems.
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Chapter 17: Introduction to Microsoft Excel
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Sample Questions
Q1) A portion of the spreadsheet to be printed can be specified using the Print Preview feature.
A)True
B)False
Q2) When adding graphs,hyperlinks,or images to a Microsoft Excel worksheet,you use the ________ tab.
A) Data
B) Format
C) View
D) Insert
Q3) In Excel,every formula must begin with a(n)________ sign.
A) plus
B) minus C) dollar
D) equality
Q4) Explain the process of inserting rows and columns in Microsoft Excel.
Q5) The intersection of a row and a column on a spreadsheet is called a data point. A)True
B)False
Q6) Explain spreadsheets.
Page 20
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Chapter 18: Preparing a Computer Budget Using Excel
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Sample Questions
Q1) Which of the following is an example of a vertical market software?
A) Microsoft Office
B) Adobe Acrobat
C) AutoCad
D) Open Office
Q2) The time taken by the read/write arm to position the head over the correct circle is referred to as rotational delay.
A)True
B)False
Q3) Which of the following is an example of a formula with an absolute address?
A) =G13*G13
B) =G13+G14
C) =$G13+$G14
D) =$G$13+$G$14
Q4) Which of the following enables the fast processing of data once the data resides in the main memory of a computer?
A) CD-ROM
B) DVD
C) CPU
D) LCD
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Chapter 19: Database Design
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Sample Questions
Q1) Normalized tables eliminate ________.
A) database design
B) data duplication
C) data entry
D) data conversion
Q2) Normalization is the process of combining two or more poorly structured tables into a single structured table.
A)True
B)False
Q3) Entities have relationships to attributes,but not to each other.
A)True
B)False
Q4) Explain the database development process.
Q5) Explain the role of users in designing a database.
Q6) Entities have ________ that describe the characteristics of the entities.
A) attributes
B) data models
C) cardinalities
D) relationships
Q7) How is a data model transformed into a database design?
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Chapter 20: 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) Which of the following tabs in Microsoft Access is used to generate reports?
A) Create
B) Data
C) Tools
D) Format
Q3) An underlined attribute is the primary key and an italicized attribute is a foreign key.
A)True
B)False
Q4) The description field in Microsoft Access is used mainly for documentation.
A)True
B)False
Q5) Microsoft Access provides a default table display for entering the data.
A)True
B)False
Q6) Microsoft Access can be used to process the SQL query language. A)True
B)False
Page 23
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Chapter 21: Using Excel and Access Together
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Sample Questions
Q1) Which of the following is an advantage of Microsoft Excel over Microsoft Access?
A) Excel is superior for tracking orders, inventory, and equipments.
B) Excel is superior for tracking people such as employees and customers.
C) Excel can be used to create better graphs and visual demonstrations.
D) Excel can be used to create better data entry forms and professional reports.
Q2) Access queries cannot be used to calculate averages of table values.
A)True
B)False
Q3) Access is superior to Excel for tracking orders,inventory,equipment,and people.
A)True
B)False
Q4) Which of the following tabs in Microsoft Excel contains the option to import data from Microsoft Access?
A) Data
B) Insert
C) External Data
D) Home
Q5) Excel cannot be used to perform calculations on data imported from Access.
A)True
B)False
24
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Chapter 22: Remote, Nomadic, and Mobile Systems
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Q1) With ________,users access networks from different locations,but not while in motion from site to site.
A) mobile access
B) remote access
C) nomadic access
D) mobile computing
Q2) ________ can be divided into two categories: Communication at a distance and action at a distance.
A) Mobile computing
B) Nomadic access
C) Remote access
D) Mobile access
Q3) One of the consequences of action at a distance will be increased value for superior skills,while the value of local mediocrity will be reduced.
A)True
B)False
Q4) Mobile access refers to the use of networked computers while in motion.
A)True
B)False
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Chapter 23: Functional Processes, Applications, and Systems
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Q1) What are the functions of modern human resources (HR)applications? How do they differ from first-era HR applications?
Q2) Which of the following is a function of the customer management module of sales and marketing application?
A) tracking product interests
B) recording individual sales projections
C) tracking variances over time
D) assessing market segments
Q3) Managing customers is not a function of sales process applications.
A)True
B)False
Q4) ________ applications record lead data and product interests and keep records of customer contacts.
A) Lead-generation
B) Lead-tracking
C) Prospect-generation
D) Product-tracking
Q5) What are functional processes and functional applications?
Q6) What are the major functions of accounting 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) CRM,as an application that must be included in a true ERP product,includes
A) quality control
B) commission calculations
C) sales prospecting
D) supplier management
Q3) 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
Q4) Give a brief description of Epicor's ERP products.
Q5) As of 2010,only Oracle and SAP have true ERP products in the cloud.
A)True
B)False
Q6) Explain how organizations of different sizes use ERP differently.
Page 27
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Chapter 25: Supply Chain Management
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Q1) 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.
Q2) The three factors of information related to the supply chain are ________.
A) source, channel, and receiver
B) purpose, availability, and means
C) source, purpose, and outcome
D) purpose, means, and outcome.
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) Use of information systems can increase the bullwhip effect.
A)True
B)False
Page 28
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Chapter 26: Processing Social Capital: Facebook, Twitter, and User-Generated Content (UGC)
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Q1) The factors involved in the computation of the social capital are,number of relationships,relationship strength,and ________.
A) networking information
B) entity resources
C) networking groups
D) operational decisions
Q2) Wikis and blogs do not contain user-generated content.
A)True
B)False
Q3) A social graph refers to ________.
A) creating and maintaining information systems
B) the strength of a social network
C) an information system that facilitates interactions on a social network
D) a network of relationships.
Q4) Explain Facebook's principles of meaningful social networking applications.
Q5) Social networking applications can be used for operations and management functions.
A)True B)False
Q6) What is a social networking information system? Page 29
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Chapter 27: Database Marketing
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Q1) In RFM analysis,an M score of ________ shows customers who have bought the least expensive item.
A) 2
B) 5
C) 1
D) 4
Q2) In RFM analysis,an F score of 1 shows that ________.
A) the customer has bought the least expensive item
B) the customer has frequently placed an order
C) the customer has always bought the most expensive item
D) the customer has rarely made a purchase
Q3) In RFM analysis,an R score of 5 shows that ________.
A) the customer has not made recent purchases
B) the customer has bought the most expensive item
C) the customer has frequently ordered costly items
D) the customer has purchased high end items lately
Q4) What are decision trees? How do they classify people into groups?
Q5) The decision tree makes decisions based on If/Then decision rules.
A)True
B)False
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Chapter 28: 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) Connecting to data sources is a part of report management.
A)True
B)False
Q3) OLAP report generation is slower compared to standard DBMS report generation.
A)True
B)False
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) Which of the following is a medium for reporting query reports?
A) paper and PDF file
B) digital dashboard
C) Web site
D) alerts via email
Q6) What are the different types of reports? Explain.
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Chapter 29: Geographic Information Systems
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Q1) When does a modifiable areal unit problem occur?
A) When a map displays colors, shades, or patterns in accordance with category values of underlying data.
B) When an organization uses GIS to achieve their goals and objectives or to obtain a competitive advantage.
C) When point based spatial data are aggregated into regions and the results depend on how the regions are defined.
D) When GIS sites have multiple users whose analyses can be invalidated by incorrect or unexpected data imports.
Q2) Geospatial data means data that can be ordered in reference to the earth.
A)True
B)False
Q3) Which of the following does a raster map contain?
A) points
B) pixels
C) lines
D) shapes
Q4) What is the procedure component of GIS?
Q5) What is asset tracking?
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Chapter 30: Business Process Management
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Sample Questions
Q1) An activity that conforms to SOA principles is called a ________.
A) COBIT
B) service provider
C) encapsulator
D) XML schema
Q2) Which of the following statements is true regarding SOA principles?
A) All service requestors are computer programs.
B) Checking customer credit is not an encapsulated activity.
C) Service providers reject improperly formatted service requests.
D) Accepting order processes does not depend on receiving a service request.
Q3) In the existing business order process,________ represent decisions and usually contain a question that can be answered with yes or no.
A) squares
B) dotted arrows
C) diamonds
D) solid arrows
Q4) Describe business process management (BPM)in brief.
Q5) How does BPM relate to SDLC?
Q6) How do process designers improve business processes?
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Chapter 31: Systems Development Project Management
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Sample Questions
Q1) What are the characteristics of large-scale systems development projects?
Q2) The critical path is a hierarchy of the tasks required to complete a project.
A)True
B)False
Q3) With respect to WBS,________ means to define the system boundaries.
A) Gantt chart
B) critical path
C) baseline
D) scope
Q4) Users must take responsibility for managing requirements changes and for avoiding requirements creep.
A)True
B)False
Q5) ________ is the knowledge area that refers to the management of the overall project and the construction of the final product.
A) Project integration
B) Communications
C) Procurement
D) Quality management
Q6) What is a critical path? How is a critical path analysis done?
35
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Chapter 32: Outsourcing
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Sample Questions
Q1) 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
Q2) What are the management advantages of outsourcing?
Q3) How can outsourcing reduce risk?
Q4) Acquiring licensed software is a form of outsourcing.
A)True
B)False
Q5) When a company outsources a system,it continues to maintain control over prioritizing the fixing of software failures and problems.
A)True
B)False
Q6) Some companies choose to outsource to save management time and attention.
A)True
B)False
Q7) What are the popular outsourcing alternatives?
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Q8) Describe in brief the risks related to the loss of control that may result from outsourcing.
Chapter 33: International MIS
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Sample Questions
Q1) If a distributed database contains copies of the same data,it is called a ________ database.
A) mirrored
B) redundant
C) replicated
D) partitioned
Q2) The phenomenon in which the variability in the size and timing of orders increases at each stage of the supply chain is known as the ________ effect.
A) accelerator
B) butterfly
C) bullwhip
D) rainbow
Q3) How does the global economy change the competitive environment?
A) Suppliers are not required to reach a wide range of customers.
B) Customers now have less access to information about substitutes.
C) It has intensified rivalry by increasing product and vendor choices.
D) It has made it easier for new market entrants in all fields to penetrate the market.
Q4) What are the challenges of international project management?
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