Information Management Exam

F in

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in a ti o n

925 North Spurgeon Street, Santa Ana, CA 92701




Phone: 714-547-9625 Fax: 714-547-5777

Essentials of MIS

11th edition, 2015

ISBN-13: 9780133576849

Kenneth C. Laudon and Jane P. Laudon



BAM 225 Information Management





Final Examination

BAM 225 Information Management

Multiple Choice Questions (Enter your answers on the enclosed answer sheet)

1. The use of information systems because of necessity describes the business objective of:

a. competitive advantage. b. improved flexibility. c. survival. d. improved business practices.

2. The field that deals with behavioral issues, as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm, is called:

a. information technology infrastructure. b. information systems architecture. c. information systems literacy. d. management information systems.

3. Which of the following would not be considered part of the implementation phase of problem solving?

a. Evaluating a selection of software packages for implementing a new business process b. Change management c. Purchasing hardware for an information systems solution d. Training an employee on new systems software

4. A major criterion in deciding the most important perspectives of a business problem is:

a. implementation. b. organizational needs. c. usefulness. d. change management.

5. Which of the following is an example of a business using information systems to create new products and services?

a. Apple’s creation of the iPod b. JC Penney’s information system that allows its contract manufacturers to see what garments have been sold and need to be replaced c. Toyota’s legendary TPS that has created superlative efficiencies and enabled Toyota to become the world’s largest auto maker d. Verizon’s Web-based digital dashboard providing real-time company information for managers




Final Examination

BAM 225 Information Management

6. Financial managers work directly with ________ to ensure investments in information systems help achieve corporate goals.

a. senior managers b. operations managers c. accounting managers d. marketing managers

7. Assume you work for a package delivery service in a major metropolitan area and that the business has been losing customers for several years. You have been asked to find a solution to this problem, perhaps one which uses modern information technologies. What is the correct way to proceed?

a. Identify the problem, design alternative solutions, choose the best solution, and then implement the solution. b. Look for solutions, evaluate the solutions, identify the problem more clearly, and then implement the solution. c. Design solutions, evaluate and identify the problems, choose the best solution, and then implement the solution. d. Think about what solutions can be implemented, look for solution designs, evaluate the designs, and then implement the solution.

8. The world’s largest and most widely used network is:

a. DARPAnet. b. the Internet. c. the Web. d.

9. These systems are designed to summarize and report on the company’s basic operations.

a. Decision support systems b. Management information systems c. Executive information systems d. Transaction processing systems

10. These systems are designed to support organization-wide process coordination and integration.

a. CRM b. Decision support systems c. Management information systems d. Enterprise applications




Final Examination

BAM 225 Information Management

11. A(n) ________ 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. management information system b. enterprise system c. automatic reporting system d. transaction processing system

12. You manage the Information Systems department at a small startup Internet advertiser. You need to set up an inexpensive system that allows customers to see real-time statistics, such as views and click-throughs, about their current banner ads. Which type of system will most efficiently provide a solution?

a. Intranet b. Enterprise system c. Extranet d. CRM

13. You work for a highly successful advertiser that is just about to expand nationally. Of utmost importance will be finding a way to store and disseminate their client’s frequently updated branding and style guides to all of their branches. The guides include multiple image files and text documents. What system will best serve these needs?

a. An extranet with KMS capabilities b. A TPS with KMS capabilities c. A virtual meeting system d. A wiki

14. Which of the following collaboration tools would be appropriate for participants in separate locations who need to collaborate synchronously?

a. Electronic meeting software b. Group calendar c. Team room d. Blog


15. The principal liaison between the information systems groups and the rest of the organization is a(n):

a. programmer. b. systems analyst. c. information systems manager. d. CIO.




Final Examination

BAM 225 Information Management

16. Development and support services for a firm’s business systems are provided by:

a. IT standards services. b. IT management services. c. IT educational services. d. Application software services.

17. Which of the following is not one of the competitive forces of Porter’s model?

a. Suppliers b. Customers c. Other competitors d. External environment

18. Which of the following is not one of the four basic strategies a company can employ to deal with competitive forces?

a. Strengthen customer and supplier intimacy b. Compete on employee loyalty c. Differentiate products d. Focus on market niche

19. Which of the following illustrates the use of information systems to achieve product differentiation?

a. A hot tub dealer’s use of information systems to determine which models and options its customers are most likely to buy b. A shoe manufacturer’s use of information systems in selling custom, made-to-order shoes directly to customers c. A PC manufacturer’s use of information systems to facilitate direct access from suppliers to production schedules d. A grocery store chain’s use of information systems to produce products and services at a lower price than competitors

20. Which of the following best describes business globalization?

a. Businesses selling their products worldwide b. Businesses moving manufacturing overseas c. Businesses whose suppliers are located overseas d. All of the above.




Final Examination

BAM 225 Information Management

21. The ________ strategy is characterized by heavy centralization of corporate activities in the home country of origin.

a. transnational b. multinational c. franchise d. domestic exporter

22. In a ________ system configuration, separate information systems are designed and managed by each foreign unit.

a. decentralized b. duplicated c. centralized d. networked

23. The reduction of errors to 3.4 defects per million opportunities is central to the concept of:

a. Six Sigma. b. benchmarking. c. cycle time reduction. d. TQM.

24. All of the following are psychological aspects of quality except:

a. the product’s reputation. b. the courtesy of salespeople. c. effective marketing. d. company’s knowledge of its products.

25. In the information age, the obligations that individuals and organizations have regarding the preservation of existing values and institutions fall within the moral dimension of:

a. family and home. b. quality of life. c. property rights and obligations. d. system quality.

26. The ethical “no free lunch” rule states that:

a. everything is owned by someone else, and that the creator wants compensation for this work. b. one should take the action that produces the least harm or incurs the least cost. c. one can put values in rank order and understand the consequences of various courses of action. d. if an action cannot be taken repeatedly, then it is not right to be taken at any time.




Final Examination

BAM 225 Information Management

27. European privacy protection is ________ than in the United States.

a. less liable to laws b. much less stringent c. less far reaching d. much more stringent

28. U.S. businesses are allowed to use personal data from EU countries if they:

a. create a safe harbor. b. have informed consent. c. develop equivalent privacy protection policies. d. make their privacy protection policies publicly available.

29. The limitation of trade secret protection for software is that it is difficult to prevent the ideas in the work from falling into the public domain when:

a. hackers are able to break into the source code. b. a new version of the software is released. c. the courts become involved. d. the software is widely distributed.

30. Intellectual property can best be described as:

a. the expression of an intangible idea. b. intangible property created by individuals or corporations. c. tangible or intangible property created from a unique idea. d. unique creative work or ideas.

31. The most common source of business system failure is:

a. software errors. b. data quality. c. hardware or facilities failures. d. software bugs.

32. Descartes’ rule of change, that if an action cannot be taken repeatedly, it is not right to take at all, is also known as:

a. the utilitarian principle. b. high-failure cost rule. c. the slippery-slope rule. d. the lemming rule.




Final Examination

BAM 225 Information Management

33. In a(n) ________ computing model, companies use their own infrastructure for essential computing tasks and adopt public cloud computing for less critical operations or additional processing during peak business periods.

a. scalable b. hybrid cloud c. quantum d. autonomic

34. Which of the following devices collects data directly from the environment for input into a computer system?

a. Sensor b. Trackball c. Audio input d. Touch screen

35. Microsoft Word is an example of:

a. open-source software. b. word-processing software. c. data management software. d. software productivity suite.

36. A set of self-contained services that communicate with each other to create a working software application is called:

a. ERP. b. enterprise integration. c. Web services. d. SOA.

37. All of the following place strain on system capacity, except for:

a. increased number of users. b. large numbers of interactive Web pages. c. minimized response time for transaction processing. d. increased business volume.

38. Which of the following refers to the ability of a computer, product, or system to expand to serve a larger number of users without breaking down?

a. Disintermediation b. Scalability c. Expandability d. Modifiability




Final Examination

BAM 225 Information Management

39. Translating software to different languages is commonly referred to as:

a. software localization. b. outsourcing. c. scaling. d. service-oriented architecture.

40. In order to manage their relationship with an outsourcer or technology service provider, firms need a contract that includes a(n):

a. TCO. b. SLA. c. SOA. d. API.

41. MongoDB and SimpleDB are both examples of:

a. Open-source databases. b. Cloud databases. c. NoSQL databases. d. SQL databases.

42. In a relational database, the three basic operations used to develop useful sets of data are:

a. select, project, and where. b. select, project, and join. c. select, from, and join. d. select, join, and where.

43. The project operation:

a. creates a subset consisting of columns in a table. b. organizes elements into segments. c. identifies the table from which the columns will be selected. d. combines relational tables to provide the user with more information than is otherwise available.

44. The most prominent data manipulation language today is:

a. Access. b. Crystal Reports. c. DB2. d. SQL.




Final Examination

BAM 225 Information Management

45. In terms of the data relationships found by data mining, associations refers to:

a. patterns that describe a group to which an item belongs. b. events linked over time. c. occurrences linked to a single event. d. undiscovered groupings.

46. In terms of the data relationships found by data mining, sequences refers to:

a. undiscovered groupings. b. patterns that describe a group to which an item belongs. c. events linked over time. d. occurrences linked to a single event.

47. Which of the following would you use to find out which Web sites with content related to database design were the most often linked to by other Web sites?

a. Web server mining b. Web content mining c. Web usage mining d. Web structure mining

48. Relational database systems use ________ to ensure that relationships between coupled tables remain consistent.

a. foreign keys b. referential integrity rules c. intersection relations d. entity-relationship diagrams

49. What are the four layers of the TCP/IP reference model?

a. Physical, application, Internet, and network interface b. Application, transport, Internet, and network interface c. Application, hardware, Internet, and network interface d. Physical, application, transport, and network interface

50. Which signal types are represented by a continuous waveform?

a. Laser b. Digital c. Optical d. Analog




Final Examination

BAM 225 Information Management

51. The “Internet of Things” refers to:

a. the microblogging trend, in which users exchange short text and pictures rather than longer and more in-depth content and text. b. a vision of a pervasive Web, in which common objects are connected to and controlled over the Internet. c. the trend away from platform-independent Web applications to mobile-device specific apps. d. the increasing focus on shopping as the major user activity on the Internet.

52. Which of the following statements about RFID is not true?

a. RFIDs use an antenna to transmit data. b. Microchips embedded in RFIDs are used to store data. c. RFIDs require line-of-sight contact to be read. d. RFIDs transmit only over a short range.

53. ________ integrate(s) disparate channels for voice communications, data communications, instant messaging, e-mail, and electronic conferencing into a single experience.

a. Unified communications b. Wireless networks c. Virtual private networks d. Intranets

54. The process of employing techniques to help a Web site achieve a higher ranking with the major search engines is called:

a. SEM. b. SEO. c. IAB. d. VPN.

55. The 802.11 set of standards is known as:

a. WSN. b. Wi-Fi. c. WiMax. d. WLAN.

56. In Europe, and much of the world, the standard for cellular services is:

a. Wi-Max. b. LTE. c. CDMA. d. GSM.




Final Examination

BAM 225 Information Management

57. An independent computer program that copies itself from one computer to another over a network is called a:

a. Trojan horse. b. bug. c. pest. d. worm.

58. Pharming involves:

a. redirecting users to a fraudulent Web site even when the user has typed in the correct address in the Web browser. b. pretending to be a legitimate business’s representative in order to garner information about a security system. c. using e-mails for threats or harassment. d. setting up fake Web sites to ask users for confidential information.

59. The HIPAA Act of 1996:

a. specifies best practices in information systems security and control. b. imposes responsibility on companies and management to safeguard the accuracy of financial information. c. requires financial institutions to ensure the security of customer data. d. outlines medical security and privacy rules.

60. The Gramm-Leach-Bliley Act:

a. specifies best practices in information systems security and control. b. imposes responsibility on companies and management to safeguard the accuracy of financial information. c. requires financial institutions to ensure the security of customer data. d. outlines medical security and privacy rules.

61. Application controls:

a. apply to all computerized applications and consist of a combination of hardware, software, and manual procedures that create an overall control environment. b. govern the design, security, and use of computer programs and the security of data files in general throughout the organization. c. can be classified as input controls, processing controls, and output controls. d. include software controls, computer operations controls, and implementation controls.




Final Examination

BAM 225 Information Management

62. ________ use scanning software to look for known problems such as bad passwords, the removal of important files, security attacks in progress, and system administration errors.

a. Stateful inspections b. Application proxy filtering technologies c. Intrusion detection systems d. Packet filtering technologies

63. For 100 percent availability, online transaction processing requires:

a. fault-tolerant computer systems. b. a multi-tier server network. c. high-capacity storage. d. dedicated phone lines.

64. In controlling network traffic to minimize slow-downs, a technology called ________ is used to examine data files and sort low-priority data from high-priority data.

a. stateful inspection b. deep-packet inspection c. high availability computing d. application proxy filtering

65. In order to achieve maximum benefit from an enterprise software package, a business:

a. uses only the processes in the software that match its own processes. b. selects only the software that best matches its existing business processes. c. customizes the software to match all of its business processes. d. changes the way it works to match the software’s business processes.

66. Why is overstocking warehouses not an effective solution for a problem of low availability?

a. It is an inefficient use of raw materials. b. It increases sales costs. c. It increases inventory costs. d. It does not speed product time to market.

67. Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain?

a. Continuous replenishment b. Demand planning c. Just-in-time strategies d. Safety stock




Final Examination

BAM 225 Information Management

68. From your reading of the Land O’ Lakes case study, the company implemented which type of system to improve supply chain efficiency?

a. Push-based supply system b. Supply-chain execution system c. Enterprise resource planning system d. Supply-chain planning system

69. A ________ is a method of interaction with a customer, such as telephone or customer service desk.

a. touch point b. sales point c. point of presence d. client channel

70. Marketing modules in CRM systems would provide tools for:

a. identifying profitable and unprofitable customers. b. managing sales prospect and contact information. c. assigning and managing customer service requests. d. capturing prospect and customer data.

71. Which of the following is an important capability for sales processes that is found in most major CRM software products?

a. Events management b. Channel promotions management c. Returns management d. Lead management

72. Which of the following is not an example of next-generation enterprise applications?

a. Stand-alone suites b. Solutions incorporating SOA c. Social CRM d. Open-source solutions

73. Which of the following is not a recent development in e-commerce?

a. The music recording industry is disrupted as music creation and distribution become decentralized. b. Online entertainment business models surge. c. Wireless Internet connections grow rapidly. d. Social networking sites become a new platform for e-commerce.




Final Examination

BAM 225 Information Management

74. Digital goods are goods that are:

a. produced digitally. b. delivered digitally. c. used with digital equipment. d. sold over digital networks.

75. Market creators:

a. sell physical products directly to consumers or individual businesses. b. create revenue by providing digital content over the Web. c. save users money and time by processing online sales transactions. d. provide a digital environment where buyers and sellers can establish prices for products.

76. Which of the following best illustrates the sales revenue model?

a. eBay receives a small fee from a seller if a seller is successful in selling an item. b. Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase. c. Flickr provides basic services for free, but charges a premium for advanced services. d. Apple accepts micropayments for single music track downloads.

77. EDI is:

a. electronic delivery infrastructure. b. electronic data invoicing. c. the exchange between two organizations of standard transactions through a network. d. the use of Internet technologies for electronic data transactions.

78. A new social mobile app you are developing allows users to find friends who are logged in and within a 10-mile radius. This would be categorized as a ________ service.

a. geoinformational b. geoadvertising c. geomapping d. geosocial service

79. ________ is a peer-to-peer market in which participants bet on the outcomes of current events, business, or social trends.

a. Crowdsourcing b. A futures auction c. A net marketplace d. A prediction market




Final Examination

BAM 225 Information Management

80. Geoadvertising sends ads to users based on their:

a. web site behaviors. b. shopping preferences. c. GPS locations. d. user addresses.

81. ________ decisions are most common at higher levels of management.

a. Unstructured b. Structured c. Semistructured d. Undocumented

82. Operational management typically makes which type of decisions?

a. Semistructured b. Procedural c. Documented d. Structured

83. Which dimension of quality means that a decision should reflect a rational process?

a. Fairness b. Accuracy c. Comprehensiveness d. Coherence

84. All of the following are analytic functionalities that BI systems deliver except:

a. production reports. b. ad hoc queries. c. dashboards. d. user interface.

85. Expert systems:

a. are based on DO WHILE rules. b. share characteristics with mainframe computing. c. solve problems too difficult for human experts. d. work in very limited domains.




Final Examination

BAM 225 Information Management

86. What are the two major types of knowledge management systems?

a. Enterprise-wide knowledge management systems and knowledge work systems b. Enterprise systems and knowledge management systems c. Expert systems and knowledge work systems d. Management information systems and decision support systems

87. ________ systems help organizations manage both structured and semistructured knowledge.

a. Digital asset management b. Knowledge work c. Knowledge network d. Enterprise content management

88. ________ intelligence technology consists of computer-based systems that attempt to emulate human behavior and thought patterns.

a. Fuzzy b. Neural c. Genetic d. Artificial

89. Decision making is enhanced by a diverse group of ________, such as data mining and fuzzy logic.

a. DSS b. intelligent models c. expert systems d. intelligent techniques

90. Which of the following types of business intelligence user is considered a power user?

a. Operational employees b. IT developers c. Senior managers d. Business analysts

91. In object-oriented development:

a. an object comprises a single, reusable program that can be combined with other objects to form a robust application. b. data is separated into discrete, reusable objects that any processes may act upon. c. data categories are described as distinct objects, which can share characteristics with other objects. d. an object combines data and processes that act on the data into a single object.




Final Examination

BAM 225 Information Management

92. The oldest method for building information systems is:

a. the systems development lifecycle. b. object-oriented development. c. prototyping. d. component-based development.

93. 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. testing and documentation may be inadequate. d. hardware, software, and quality standards are less important.

94. This type of systems development is characterized by significantly speeding the generation of information requirements and involving users at an intense level in the systems design.

a. End-user development b. Prototyping c. JAD d. RAD

95. Object-oriented development could potentially reduce the time and cost of writing software because:

a. a single user interface object can be used for the entire application. b. objects are reusable. c. object-oriented programming requires less training. d. iterative prototyping is not required.

96. Groups of objects are assembled into software components for common functions, which can be combined into large-scale business applications, in which type of software development?

a. RAD b. Component-based development c. Structured methodologies d. Object-oriented development

97. ________ provides software tools to automate development methodologies and reduce the amount of repetitive work in systems development.

a. CAD b. CASE c. JAD d. RAD




Final Examination

BAM 225 Information Management

98. You would expect to find all of the following in an information systems plan except:

a. milestones and planning. b. portfolio analysis. c. key business processes. d. budget requirements.

99. A ________ shows each task as a horizontal bar whose length is proportional to the time required to complete it.

a. feasibility study b. DFD c. PERT chart d. Gantt chart

100. A(n) ________ is a detailed list of questions submitted to external vendors to determine how well they meet the organization’s specific requirements.

a. RFP b. RAD c. JAD d. RFQ

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