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Prep Quiz 1 Example Questions
Chapters 1, 2 and 4
54
Business
Undergraduate 3
09/10/2013

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Term
1) The six important business objectives of information technology are: new products, services,
and business models; customer and supplier intimacy; improved decision-making; competitive advantage; operational excellence, and:
A) flexibility.
B) survival.
C) improved business practices.
D) improved efficiency.
Definition
B) Survival
Term
2) Verizon's implementation of a Web-based digital dashboard to provide managers with realtime
information such as customer complaints is an example of:
A) improved decision-making.
B) improved flexibility.
C) improved efficiency.
D) customer and supplier intimacy.
Definition
A) Improved Decision Making
Term
3) The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the
information system business objective of:
A) improved efficiency.
B) customer and supplier intimacy.
C) survival.
D) competitive advantage
Definition
C) Survival
Term
4) The three activities in an information system that produce the information organizations use to
control operations are:
A) information retrieval, research, and analysis.
B) input, output, and feedback.
C) input, processing, and output.
D) data analysis, processing, and feedback.
Definition
C) Input, Processing, and Output
Term
5) The average number of tickets sold daily online is an example of:
A) input.
B) raw data.
C) meaningful information.
D) output.
Definition
C) Meaningful Data
Term
6) Converting raw data into a more meaningful form is called:
A) capturing.
B) processing.
C) organizing.
D) feedback.
Definition
B) Processing
Term
7) An example of raw data from a national chain of automobile stores would be:
A) average of 13 Toyotas sold daily in Kentucky in 2007.
B) 300 Toyota RAV4s sold during fourth quarter 2007 in Kentucky.
C) annual sales of Toyota RAV4s increased 2.4 percent.
D) 1 Toyota RAV4 sold January 7, 2008 in Louisville, Kentucky - $28000.
Definition
D) 1 Toyota RAV4 sold January 7, 2008 in Lousiville, Kentucky - $28,000.
Term
8) The fundamental set of assumptions, values, and ways of doing things that has been accepted
by most of a company's members is called its:
A) culture.
B) environment.
C) atmosphere.
D) values.
Definition
A) Culture
Term
9) Consider an information system in a moving company that analyzes travel patterns and
decides which routes are the most efficient for every van. The procedures that the employees
need to follow to update this system with arrival and departure times would be considered a(n)
________ element of the system.
A) organizational
B) managerial
C) people
D) technology
Definition
A) Organizational
Term
10) Intranets:
A) are based on mainframe technology.
B are multiple networks joined together.
C) are typically used to communicate with the business’s trusted vendors.
D) use Internet technology for a private company network.
Definition
D) Use Internet Technology for private company network.
Term
11) Poor business processes and unsupportive culture are examples of the ________ dimension
of business problems.
A) management
B) organizational
C) people
D) infrastructure
Definition
B) Organization
Term
12) The final step in the four-step model of business problem solving is:
A) outcome.
B) implementation.
C) change management.
D) feedback.
Definition
B) Implementation
Term
13) A major criterion in deciding the most important perspectives of a business problem is:
A) implementation.
B) change management.
C) usefulness.
D) organizational needs.
Definition
C) Usefulness
Term
14) An example of a business using information systems to attain competitive advantage is:
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) Verizon's Web-based digital dashboard providing real-time company information for
managers.
D) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota to
become the world's largest auto maker.
Definition
D) Toyota's legendary TPS that has created superlative efficiencies and enabled Toyota to
become the world's largest auto maker.
Term
15) An example of a business using information systems for customer and supplier intimacy is:
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.
Definition
B) JC Penney's information system that allows its contract manufacturers to see what garments
have been sold and need to be replaced.
Term
16) An information skill important for an accounting major would be:
A) an understanding of online transaction and reporting sytems.
B) an understanding of product management enterprise systems.
C) an understanding of supplier management enterprise systems.
D) an understanding of enterprise systems that enhance leadership.
Definition
A) an understanding of online transaction and reporting sytems.
Term
17) An information skill important for a marketing major would be:
A) an understanding of online transaction and reporting sytems.
B) an understanding of product management enterprise systems.
C) an understanding of supplier management enterprise systems.
D) an understanding of enterprise systems that enhance leadership.
Definition
B) an understanding of product management enterprise systems.
Term
18) The culture of UPS places service to the customer among the company's highest business
objectives, which is reflected in their use of information systems to enable customer tracking of
their packages. Based on your reading of Chapter 1, why is "culture" an important factor to
consider when building information system solutions to business problems?
A) Culture is one element that can be radically changed, not always for the better, by new
information systems.
B) Culture affects how information system solutions are implemented and used.
C) Culture is a cauldron of employee perspectives and conflicts, which can be used to improve
business processes.
D) Culture is the driving force behind decision making and innovation.
Definition
B) Culture affects how information system solutions are implemented and used.
Term
1) Which of the following is a cross-functional business process?
A) Fulfilling a customer order
B) Hiring an employee
C) Identifying a customer
D) Creating an invoice
Definition
A) Fulfilling a customer order
Term
2) Engineers and architects are examples of:
A) senior management.
B) production workers.
C) knowledge workers.
D) middle management.
Definition
C) knowledge workers
Term
3) A computerized system that performs and records the daily dealings necessary to conduct
business is classified as a(n):
A) executive support system.
B) management-level system.
C) decision support system.
D) transaction-processing system.
Definition
D) transaction-processing system.
Term
4) These systems are designed to summarize and report on the company's basic operations.
A) Management information systems
B) Decision-support systems
C) Executive information systems
D) Transaction processing systems
Definition
A) Management information systems
Term
5) DSS and MIS are also referred to as ________ systems:
A) business information systems.
B) business intelligence systems.
C) executive support systems.
D) business model systems.
Definition
B) business intelligence systems.
Term
6) 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.
Definition
A) long-range planning activities of senior management.
Term
7) 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) transaction processing system
B) enterprise system
C) automatic reporting system
D) management information system
Definition
B) enterprise system
Term
8) What is the most important benefit of an enterprise application?
A) Enabling speed of communicating.
B) Enabling a company to work collaboratively with customers and suppliers.
C) Enabling business functions and departments to share information.
D) Enabling cost-effective, e-business processes.
Definition
C) Enabling business functions and departments to share information.
Term
9) ________ systems provide information to coordinate all of the business processes that deal
with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and
customer retention.
A) CRM
B) MIS
C) ESS
D) CPS
Definition
A) CRM
Term
10) Second Life is an example of a:
A) wiki.
B) virtual world.
C) social networking site.
D) mind mapping tool.
Definition
B) virtual world.
Term
11) The most widely used collaboration software tool used by very large firms is:
A) Lotus Notes.
B) Microsoft SharePoint.
C) Google Apps.
D) Onehub.
Definition
A) Lotus Notes
Term
12) Which of the following collaboration tools would be appropriate for participants in separate
locations who need to collaborate synchronously?
A) blog
B) team room
C) group calendar
D) electronic meeting software
Definition
D) electronic meeting software
Term
13) The principal liaison between the information systems groups and the rest of the organization
is a(n) _________. It is the _____’s job to translate business problems and requirements into
information requirements and systems.
A) programmer.
B) information systems manager.
C) systems analyst.
D) CIO.
Definition
C) systems analyst.
Term
14) A ________ is a senior manager who oversees the use of IT in the firm.
A) CIO
B) CEO
C) CFO
D) CIT
Definition
A) CIO
Term
15) Development and support services for a firm's business systems are provided by:
A) IT educational services.
B) IT management services.
C) Application software services.
D) IT standards services.
Definition
C) Application software services.
Term
16) The three principal levels of hierarchies within a business organization are:
A) management, knowledge workers, and service workers.
B) senior management, middle management, and operational management.
C) management, data workers, and operational management.
D) senior management, operational management, and workers.
Definition
B) senior management, middle management, and operational management.
Term
17) Key forces in a business's immediate environment include:
A) regulations.
B) technology.
C) economy.
D) politics.
Definition
A) regulations.
Term
18) Which of the following is an example of a key force in a firm's broader, less immediate
environment?
A) Stockholders
B) Regulations
C) Shipping firms
D) Technology innovations
Definition
D) Technology innovations
Term
1) Software that organizes, manages, and processes business data, such as data concerned with
inventory, customers, and vendors, is called:
A) system software.
B) application software.
C) data management software.
D) network software.
Definition
C) data management software.
Term
2) Software that manages the resources of the computer is called:
A) system software.
B) application software.
C) data management software.
D) network software.
Definition
A) system software.
Term
3) Software used to apply the computer to a specific task for an end user is called:
A) system software.
B) application software.
C) data management software.
D) network software.
Definition
B) application software.
Term
4) Which of the following types of computer is used for weather forecasting?
A) Mainframe
B) Server
C) Minicomputer
D) Supercomputer
Definition
D) Supercomputer
Term
5) Connecting geographically remote computers in a single network to create a "virtual
supercomputer" is called:
A) co-location.
B) cloud computing.
C) grid computing.
D) autonomic computing.
Definition
C) grid computing.
Term
6) Which of the following statements is not true about cloud computing?
A) It consists of three types of services: cloud infrastructure, cloud platform, and cloud software.
B) It removes the concern about data and systems security for businesses.
C) It allows smaller firms to use resources previously unaffordable.
D) It relies on the Internet as the platform for delivering services to users.
Definition
B) It removes the concern about data and systems security for businesses.
Term
7) A high-speed network dedicated to storage that connects different kinds of storage devices,
such as tape libraries and disk arrays so they can be shared by multiple servers best describes:
A) SSN.
B) ASP.
C) LAN.
D) SAN.
Definition
D) SAN.
Term
8) The main challenge coming to Microsoft's Office software suite will be:
A) open-source, Linux-based suites such as StarOffice.
B) Web-based productivity software such as Google Apps.
C) mobile software.
D) in-house, custom software created using open-source Web services.
Definition
B) Web-based productivity software such as Google Apps.
Term
9) In client/server computing, the client is:
A) software program used for logging on to the network.
B) the location of the bulk of the processing.
C) the computer that acts as the user point of entry.
D) the computer that firsts asks for services.
Definition
C) the computer that acts as the user point of entry.
Term
10) In order to manage their relationship with an outsourcer or technology service provider,
firms need a contract that includes a(n):
A) SLA.
B) SOA.
C) TCO.
D) API.
Definition
A) SLA.
Term
11) Linux plays a major role in supporting business information systems, and has garnered about
________ of the U.S. server market..
A) 10 percent
B) 25 percent
C) 50 percent
D) 80 percent
Definition
B) 25 percent
Term
12) 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) Modifiability
B) Expandability
C) Scalability
D) Disintermediation
Definition
C) Scalability
Term
13) Linux is:
A) primarily concerned with the tasks of end users.
B) designed for specific machines and specific microprocessors.
C) an example of open-source software.
D) especially useful for processing numeric data.
Definition
C) an example of open-source software.
Term
14) Virtualization:
A) allows one operating system to manage several physical machines.
B) has enabled microprocessor manufacturers to reduce the size of transistors to the width of an
atom.
C) allows smartphones to run full-fledged operating systems.
D) can boost server utilization rates to 70% or higher.
Definition
D) can boost server utilization rates to 70% or higher.
Term
15) A set of self-contained services that communicate with each other to create a working
software application is called:
A) Web services.
B) SOA.
C) enterprise integration.
D) SOAP.
Definition
B) SOA.
Term
16) ChicagoCrime.org, which combines Google Maps with crime data for the city of Chicago, is
an example of:
A) cloud computing.
B) SOA.
C) a widget.
D) a mashup.
Definition
D) a mashup.
Term
17) A ________ cloud is owned and maintained by a cloud service provider such as Amazon
Web Services, and made available to the general public or industry group.
A) private.
B) white.
C) public.
D) grid computing.
Definition
C) public.
Term
18) To analyze the direct and indirect costs and determine the actual cost of specific technology
implementations, you would use a:
A) total cost of ownership model.
B) return on investment model.
C) breakeven point.
D) cost benefit analysis.
Definition
A) total cost of ownership model.
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