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Chapter 4

21) On average, private sector IT projects


underestimated budget and delivery time of systems by
________ percent.
A. 30
B. 40
C. 50
D. 60
C
22) The major variables in project management are
A. scope, time, cost, and performance.
B. scope, time, cost, quality, and risk.
C. time, cost, quality, performance, and risk.
D. time, cost, scope, and performance.
B
23) At the top of the management structure for
information systems projects in a large company is
A. project management.
B. the CIO.
C. the corporate strategic planning group.
D. the IS steering committee.
C
24) The ________ is directly responsible for the individual
systems project.
A. project management group
B. project team
C. IS steering committee
D. corporate strategic planning committee
B
25) The ________ reviews and approves plans for systems
in all divisions.
A. project management group
B. project team
C. IS steering committee
D. corporate strategic planning committee

C
26) The ________ consists of systems analysts, specialists
from the relevant end-user business areas, application
programmers, and perhaps database specialists.
A. project management group
B. project team
C. IS steering committee
D. corporate strategic planning committee
B
27) A CSF approach to establishing an enterprise's
information requirements is especially suitable for
A. distinguishing between individual and organizational
objectives.
B. identifying the key entities and attributes of the
organization's data.
C. understanding how organizational units define critical
data.
D. the development of DSSs and ESSs.
D
28) A road map indicating the direction of systems
development, the rationale, the current systems, new
developments to consider, the management strategy,
the implementation plan, and the budget is called a(n)
A. project plan.
B. portfolio analysis.
C. information systems plan.
D. enterprise analysis.
C
29) The principle method used in CFS analysis is to
A. inventory all of the organization's information
systems projects and assets and assign risk levels.
B. perform a weighted comparison of the criteria used to
evaluate a system.
C. survey a large sample of managers on their
objectives, decision-making process, and uses and
needs for data and information.

D. interview a small number of top managers to identify


their goals and criteria for achieving success.
D
30) In CFS analysis, it is important to
A. interview as many employees from different levels of
the company as possible.
B. create a broad inquiry into the various types of
information used in the company.
C. distinguish between organizational and individual
CSFs.
D. identify operational managers that can accurately
portray the day-to-day information needs of the firm.
C
31) The central method used in a portfolio analysis is to
A. inventory all of the organization's information
systems projects and assets.
B. perform a weighted comparison of the criteria used to
evaluate a system.
C. survey a large sample of managers on their
objectives, decision-making process, and uses and
needs for data and information.
D. interview a small number of top managers to identify
their goals and criteria for achieving success.
A
32) In using a portfolio analysis to determine which IT
projects to pursue, you would
A. select the most low-risk projects from the inventory.
B. limit work to those projects with great rewards.
C. select only low-risk, high-reward projects.
D. balance high-risk, high reward projects with lowerrisk projects.
D
33) Which method would you use is used to develop risk
profiles for a firm's information system projects and
assets?
A. information systems plan

B. scoring model
C. portfolio analysis
D. CSF
C
34) The central method used in a scoring model is to
A. inventory all of the organization's information
systems projects and assets.
B. perform a weighted comparison of the criteria used to
evaluate a system.
C. survey a large sample of managers on their
objectives, decision-making process, and uses and
needs for data and information.
D. interview a small number of top managers to identify
their goals and criteria for achieving success.
B
35) You have been hired by a pharmaceutical company
to evaluate its inventory of systems and IT projects.
Which types of projects would be best avoided?
A. any high risk projects
B. any low-benefit projects
C. all high-risk, low benefit projects
D. none, any project might be beneficial.
C
36) Which method is used to assign weights to various
features of a system?
A. information systems plan
B. scoring model
C. portfolio analysis
D. CSF
B
37) The criteria used for evaluation in a scoring model
are usually determined by
A. lengthy discussions among the decision-making
group.
B. a CSF analysis.
C. the IS steering committee.

D. systems analysts.
A
38) ________ are all intangible benefits of information
systems.
A. Improved asset utilization, increased organizational
learning, and improved operations
B. Reduced workforce, lower outside vendor costs, and
increased productivity
C. Increased productivity, reduced workforce, and
increased job satisfaction
D. Lower operational costs, improved resource control,
and more information
A
39) ________ are all tangible benefits of information
systems.
A. Improved asset utilization, increased organizational
learning, and improved operations
B. Reduced workforce, lower outside vendor costs, and
increased productivity
C. Increased productivity, reduced workforce, and
increased job satisfaction
D. Lower operational costs, improved resource control,
and more information
B
40) The worth of systems from a financial perspective
essentially revolves around the issue of
A. CSFs.
B. adherence to information requirements.
C. asset utilization.
D. return on invested capital.
D
41) When using a capital budgeting method in
measuring the worth of an information system, which of
the following related costs would you use to assess the
cash inflow?
A. increased sales of products

B. hardware and software expenditures


C. labor expenditures
D. reduced costs in production and operation
E. both A and D
F) both B and C
G) A, B, C and D
E
42) In working with ROPMs and options valuation, a
financial 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 a later date at a strike
price.
D. right to purchase or sell an asset a later date at a
fixed price.
D
43) The principal capital budgeting models for
evaluating information technology projects are the
payback method, the accounting rate of return on
investment (ROI), the net present value, and the
A. future present value.
B. internal rate of return.
C. external rate of return.
D. ROPM.
B
44) ROPMs value information systems similar to stock
options, in that
A. ROPMs can be bought and sold like stocks.
B. a company's worth can be evaluated by the worth of
their ROPMs.
C. initial expenditures on IT projects are seen as
creating the right to pursue and obtain benefits from the
system at a later date.

D. expenditures and benefits from IT projects are seen


as inflows and outflows of cash that can be treated
themselves like options.
C
45) To best evaluate, from a financial standpoint, an IT
investment whose benefits cannot be firmly established
in advance, you would use:
A. capital budgeting.
B. the real option pricing model.
C. a scoring model.
D. the net present value.
B
46) The level of a project's risk is influenced primarily by
A. project size, project structure, and the level of
technical expertise.
B. project cost, project scope, and the implementation
plan.
C. project scope, project schedule, and project budget.
D. project size, project scope, and the level of technical
expertise.
A
47) The project risk will rise if the project team and the
IS staff lack
A. legacy applications as a starting point.
B. good equipment.
C. the required technical expertise.
D. financial studies and plans.
C
48) The organizational activities working toward the
adoption, management, and routinization of a new
information system are called
A. production.
B. maintenance.
C. implementation.
D. acceptance.
C

49) Which of the following is NOT one of the activities of


the systems analyst?
A. acting as a change agent
B. communication with users
C. mediating between competing interest groups
D. formulation of capital budgeting models
D
50) One example of an implementation problem is
A. poor user interface.
B. inadequate user training.
C. project running over budget.
D. changes in job activities and responsibilities.
B
51) According to your reading of the chapter, change
management is a process that
A. should be addressed before a project is developed.
B. begins when a project is implemented.
C. is used primarily to mandate user acceptance.
D. must be addressed in all systems development.
A
52) Users prefer systems that
A. are oriented to facilitating organizational tasks and
solving business problems.
B. work with existing DBMS.
C. are able to provide optimum hardware and software
efficiency.
D. are capable of storing much more data than they
need.
A
53) The communications gap between users and
systems designers is created by their differences in
A. backgrounds.
B. interests.
C. priorities.
D. all of the above.

D
54) 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
C
55) Which of the following is NOT a responsibility of
effective change management?
A. integrating legacy systems
B. dealing with fear and anxiety about new systems
C. training users of the new system
D. enforcing user participation at all stages of system
development
A
56) Which of the following tools would you use to
control risk factors in an information systems project?
A. internal integration tools
B. external integration tools
C. formal planning tools and formal control tools
D. All of the above
D
57) Internal integration tools:
A. enable a project to have sufficient technical support
for project management and development.
B. enable a project manager to properly document and
monitor project plans.
C. portray a project as a network diagram with
numbered nodes representing project tasks.

D. consist of ways to link the work of the


implementation team with users at all organization
levels.
A
58) An example of using an internal integration tool
would be to
A. define task dependencies.
B. include user representatives as active members of the
project team.
C. create a PERT chart.
D. hold frequent project team meetings.
D
59) Formal planning and control tools
A. enable a project to have sufficient technical for
support project management and development.
B. enable a project manager to properly document and
monitor project plans.
C. portray a project as a network diagram with
numbered nodes representing project tasks.
D. consist of ways to link the work of the
implementation team with users at all organization
levels.
B
60) External integration tools
A. enable a project to have sufficient technical support
for project management and development.
B. enable a project manager to properly document and
monitor project plans.
C. portray a project as a network diagram with
numbered nodes representing project tasks.
D. consist of ways to link the work of the
implementation team with users at all organization
levels.
D
61) An example of using an external integration tool
would be to:

A. define task dependencies.


B. include user representatives as active members of the
project team.
C. create a PERT chart.
D. hold frequent project team meetings.
B
62) Which type of planning tool shows each task as a
horizontal bar whose length is proportional to the time
required to complete it?
A. PERT chart
B. Gantt chart
C. Both A and B
D. Neither A nor B
B
63) To review a project's tasks and their
interrelationships, you would use a
A. PERT chart.
B. Gantt chart.
C. Either A or
B. D. Neither A nor B.
A
64) Which type of tool helps project managers identify
bottlenecks in project development?
A. internal integration tools
B. external integration tools
C. formal planning and control tools
D. both B and C
C
65) As discussed in the chapter case, which of the
following difficulties proved the most challenging to the
CDC in the implementation of its BioSense system?
A. user-designer communications gap
B. lack of management support
C. poor technical performance
D. user resistance
D

66) Which of the following tools may help identify risk


areas associated with employee acceptance of a new
information system?
A. formal planning and control tools
B. organizational impact analysis
C. system prototype
D. feasibility study
B
67) Which of the following is NOT an organizational
factor in systems planning and implementation?
A. standards and performance monitoring
B. government regulatory compliance
C. health and safety
D. user interface
D
68) In sociotechnical design
A. separate sets of technical and social design solutions
are developed and compared.
B. ergonomic features of a system and the system's
technical design are given equal importance.
C. systems analysts with proven backgrounds in
sociological concerns rate and compare a system's social
and technical aspects.
D. all of the above.
A
69) The most widely used project management software
today is
A. Vertabase.
B. IBM Project Guide.
C. Microsoft Project.
D. Microsoft Excel.
C
70) As described in the chapter case study on the U.S.
Census Bureau, which of the following would have done

the most to prevent the challenges, costs, and delays in


implementing the 2010 Census project?
A. PERT and Gantt charts
B. risk management
C. external integration tools
D. organizational impact analysis
B

The principal capital budgeting models for evaluating


information technology projects are the payback
method, the accounting rate of return on investment
(ROI), the net present value, and the
future present value
internal rate of return.
external rate of return.
ROPM.
internal rate of return.
Intangible benefits cannot be immediately quantified but
may lead to quantifiable gains in the long run.
True
False
True
________ are all tangible benefits of information systems.
Improved asset utilization, increased organizational
learning, and improved operations
Reduced workforce, lower outside vendor costs, and
increased productivity

Increased productivity, reduced workforce, and


increased job satisfaction
Lower operational costs, improved resource control, and
more information
Reduced workforce, lower outside vendor costs, and
increased productivity
________ are all intangible benefits of information
systems.
Improved asset utilization, increased organizational
learning, and improved operations
Reduced workforce, lower outside vendor costs, and
increased productivity
Increased productivity, reduced workforce, and
increased job satisfaction
Lower operational costs, improved resource control, and
more information
Improved asset utilization, increased organizational
learning, and improved operations
The central method used in a portfolio analysis is to
inventory all of the organization's information systems
projects and assets.
perform a weighted comparison of the criteria used to
evaluate a system.
survey a large sample of managers on their objectives,
decision-making process, and uses and needs for data
and information.
interview a small number of top managers to identify
their goals and criteria for achieving success.

inventory all of the organization's information systems


projects and assets.
The ________ is directly responsible for the individual
systems project.
project management group
project team
IS steering committee
corporate strategic planning committee
project team
An example of using an external integration tool would
be to:
define task dependencies.
include user representatives as active members of the
project team.
create a PERT chart.
hold frequent project team meetings.
include user representatives as active members of the
project team.
Which of the following tools would you use to control
risk factors in an information systems project?
internal integration tools
external integration tools
formal planning tools and formal control tools
all of these
all of these

In sociotechnical design
separate sets of technical and social design solutions are
developed and compared.
ergonomic features of a system and the system's
technical design are given equal importance.
systems analysts with proven backgrounds in
sociological concerns rate and compare a system's social
and technical aspects.
all of these.
separate sets of technical and social design solutions are
developed and compared.
In working with ROPMs and options valuation, a financial
option is a(n)
obligation to purchase an asset at a later date at a fixed
price.
obligation to either purchase or sell an asset at a later
date at a strike price.
right to purchase an asset a later date at a strike price.
right to purchase or sell an asset a later date at a fixed
price.
right to purchase or sell an asset a later date at a fixed
price.
In CFS analysis, it is important to
interview as many employees from different levels of the
company as possible
create a broad inquiry into the various types of
information used in the company.

distinguish between organizational and individual CSFs.


identify operational managers that can accurately
portray the day-to-day information needs of the firm.
distinguish between organizational and individual CSFs.
Which of the following tools may help identify risk areas
associated with employee acceptance of a new
information system?
formal planning and control tools
organizational impact analysis
system prototype
feasibility study
organizational impact analysis
One example of an implementation problem is
poor user interface.
inadequate user training.
project running over budget.
changes in job activities and responsibilities.
inadequate user training.
On average, private sector IT projects underestimated
budget and delivery time of systems by ________ percent.
30
40
50

60
50
When using a capital budgeting method in measuring
the worth of an information system, which of the
following related costs would you use to assess the cash
inflow?
increased sales of products
hardware and software expenditures
labor expenditures
reduced costs in production and operation
both increased sales of products and reduced costs in
production and operation
both hardware and software expenditures and labor
expenditures
increased sales of products, hardware and software
expenditures, labor expenditures and reduced costs in
production and operation
both increased sales of products and reduced costs in
production and operation
To review a project's tasks and their interrelationships,
you would use a
PERT chart.
Gantt chart.
Either PERT chart or Gantt chart.
Neither PERT chart nor Gantt chart.
PERT chart.

According to your reading of the chapter, change


management is a process that
should be addressed before a project is developed
begins when a project is implemented.
is used primarily to mandate user acceptance.
must be addressed in all systems development.
should be addressed before a project is developed.
The central method used in a scoring model is to
inventory all of the organization's information systems
projects and assets.
perform a weighted comparison of the criteria used to
evaluate a system.
survey a large sample of managers on their objectives,
decision-making process, and uses and needs for data
and information.
interview a small number of top managers to identify
their goals and criteria for achieving success.
perform a weighted comparison of the criteria used to
evaluate a system.
The systems analyst is the catalyst for the entire change
process and is responsible for making sure that
everyone involved accepts the changes created by a new
system.
True
False
True

An information system project's scope is directly related


to its business requirements.
True
False
True
More timely information is a tangible benefit of
information systems.
True
False
False
The goal of sociotechnical design is to create systems
with better user interfaces and contribute to fewer
health issues.
True
False
False
Which of the following types of projects is most likely to
fail?
integration of an third-party automated payment system
replacement of middleware with Web services for legacy
application integration
a business process redesign project that restructures
workflow and responsibilities
redesigning a user interface to an online investment site
a business process redesign project that restructures
workflow and responsibilities

In using a portfolio analysis to determine which IT


projects to pursue, you would
select the most low-risk projects from the inventory.
limit work to those projects with great rewards.
select only low-risk, high-reward projects.
balance high-risk, high reward projects with lower-risk
projects.
balance high-risk, high reward projects with lower-risk
projects.
The design of jobs, health issues, and the end-user
interface of information systems are all considerations in
the field of ergonomics.
True
False
True
The major variables in project management are
scope, time, cost, and performance.
scope, time, cost, quality, and risk.
time, cost, quality, performance, and risk.
time, cost, scope, and performance.
scope, time, cost, quality, and risk.
The principle method used in CFS analysis is to
inventory all of the organization's information systems
projects and assets and assign risk levels.
perform a weighted comparison of the criteria used to

evaluate a system.
survey a large sample of managers on their objectives,
decision-making process, and uses and needs for data
and information.
interview a small number of top managers to identify
their goals and criteria for achieving success.
interview a small number of top managers to identify their
goals and criteria for achieving success.
Users prefer systems that
are oriented to facilitating organizational tasks and
solving business problems.
work with existing DBMS.
are able to provide optimum hardware and software
efficiency.
are capable of storing much more data than they need.
are oriented to facilitating organizational tasks and
solving business problems.
The project risk will rise if the project team and the IS
staff lack
legacy applications as a starting point.
good equipment.
the required technical expertise.
financial studies and plans.
the required technical expertise.
ROPMs value information systems similar to stock
options, in that

ROPMs can be bought and sold like stocks.


a company's worth can be evaluated by the worth of
their ROPMs.
initial expenditures on IT projects are seen as creating
the right to pursue and obtain benefits from the system
at a later date.
expenditures and benefits from IT projects are seen as
inflows and outflows of cash that can be treated
themselves like options.
initial expenditures on IT projects are seen as creating the
right to pursue and obtain benefits from the system at a
later date.
Chap14

30%
On average, private sector IT projects underestimated
budget and delivery time of systems:
scope, time, cost, quality, and risk.
The major variables in project management are:
the corporate strategic planning group
At the top of the management structure for information
systems projects in a large company is:
project team
The ________ is directly responsible for the individual
systems project.
IS steering committee
The ________ reviews and approves plans for systems in all
divisions.
project team

The ________ consists of systems analysts, specialists from


the relevant end-user business.
the development of DSSs and ESSs
A CSF approach to establishing an enterprise's information
requirements is especially suited for:
information systems plan
A road map indicating the direction of systems
development, the rationale, the current systems, new
developments to consider, the management strategy, the
implementation plan, and the budget is called a(n):
interview a small number of top managers to identify
their goals and criteria for achieving success.
The principle method used in CFS analysis is to:
distinguish between organizational and individual CSFs
In CFS analysis, it is important to:
inventory all of the organization's information systems
projectsand assets.
The central method used in a portfolio analysis is to:
limit work to those projects with great rewards
In using a portfolio analysis to determine which IT projects
to pursue, you would:
portfolio analysis
Which method is used to develop risk profiles for a firm's
information systemprojects and assets?
perform a weighted comparison of the criteria used to
evaluate a system.
The central method used in a scoring model is to:
any low-benefit projects.

You have been hired by a pharmaceutical company to


evaluate its inventory of systems and IT projects. Which
types of projects would be best avoided?
scoring model
Which method is used to assign weights to various
features of a system?
lengthy discussions among the decision-making group
The criteria used for evaluation in a scoring model are
usually determined by:
Improved asset utilization, increased organizational
learning, and improved operations
________ are all intangible benefits of information systems.
Reduced workforce, lower outside vendor costs, and
increased productivity
________ are all tangible benefits of information systems.
return on invested capital
The worth of systems from a financial perspective
essentially revolves aroundthe issue of:
Increased products and sales and reduced costs in
production and operation (BOTH A AND D).
When using a capital budgeting method in measuring the
worth of an information system, which of the following
related costs would you use to assess the cash inflow?
right to purchase an asset a later date at a strike price.
In working with ROPMs and options valuation, a financial
option is a(n):
internal rate of return
The principal capital budgeting models for evaluating
information technology projects are the payback method,
the accounting rate of return on investment (ROI), the
netpresent value, and the:

initial expenditures on IT projects are seen as creating


the rightto pursue and obtain benefitsfrom the system at
a later date.
ROPMs value information systems similar to stock options,
in that:
the real option pricing model.
To best evaluate, from a financial standpoint, an IT
investment whose benefits cannot be firmly established in
advance, you would use:
project size, project structure, and the level of technical
expertise.
The level of a project's risk is influenced primarily by:
the required technical expertise.
The project risk will rise if the project team and the IS staff
lack:
implementation
The organizational activities working toward the adoption,
management, and routinization of a new information
system are called:
formulation of capital budgeting models
Which of the following is NOT one of the activities of the
systems analyst?
inadequate user training
One example of an implementation problem is:
must be addressed in all systems development.
According to your reading of the chapter, change
management is a process that:
are oriented to facilitating organizational tasks and
solving business problems.
Users prefer systems that:

Backgrounds, interests, and priorities. (ALL OF THE


ABOVE)
The communications gap between users and systems
designers is created by their differences in:
a business process redesign project that restructures
workflow and responsibilities.
Which of the following types of projects is most likely to
fail?
integrating legacy systems
Which of the following is NOT a responsibility of effective
change management?
Internal integration tools, external integration tools, and
formal planning tools and formal control tools. (ALL OF
THE ABOVE)
Which of the following tools would you use to control risk
factors in an information systems project?
enable a project to have sufficient technical support for
project management and development.
Internal integration tools:
hold frequent project team meetings
An example of using an internal integration tool would be
to:
enable a project manager to properly document and
monitor project plans
Formal planning and control tools:
consist of ways to link the work of the implementation
team with users at all organization levels.
External integration tools:
include user representatives as active members of the
project team

An example of using an external integration tool would be


to:
Gantt chart
Which type of planning tool shows each task as a
horizontal bar whose length is proportional to the time
required to complete it?
PERT chart
To review a project's tasks and their interrelationships,
you would use a:
formal planning and control tools
Which type of tool helps project managers identify
bottlenecks in project development?
user resistance
As discussed in the chapter case, which of the following
difficulties proved the most challenging to the CDC in the
implementation of its BioSense system?
organizational impact analysis
Which of the following tools may help identify risk areas
associated with employee acceptance of a new information
system?
government regulatory compliance
Which of the following is NOT an organizational factor in
systems planning and implementation?
separate sets of technical and social design solutions are
developed and compared.
In sociotechnical design:
Microsoft Project
The most widely used project management software today
is:

Chapter 14

On average, private sector IT projects underestimated


budget and delivery time of systems by ________ percent.
A) 30
B) 40
C) 50
D) 60
C) 50
As discussed in the chapter, which of the following is
not one of the immediate consequences of inadequate
software project management?
A) cost overruns
B) organizational conflict
C) time slippage
D) technical shortfalls
B) organizational conflict
Which of the following is not one of the five main
variables affecting project success?
A) risk
B) goals
C) time
D) quality
B) goals
At the top of the management structure for information
systems projects in a large company is
A) project management.
B) the CIO.
C) the corporate strategic planning group.
D) the board of directors
C) the corporate strategic planning group.
The ________ reviews and approves plans for systems in
all divisions.
A) project management group
B) project team

C) IS steering committee
D) corporate strategic planning committee
C) IS steering committee
The ________ consists of systems analysts, specialists
from the relevant end-user business areas, application
programmers, and perhaps database specialists.
A) project management group
B) project team
C) IS steering committee
D) corporate strategic planning committee
B) project team
The ________ is directly responsible for the individual
systems project.
A) project management group
B) project team
C) IS steering committee
D) corporate strategic planning committee
B) project team
A road map indicating the direction of systems
development, the rationale, the current systems, new
developments to consider, the management strategy,
the implementation plan, and the budget is called a(n)
A) project plan.
B) portfolio analysis.
C) information systems plan.
D) enterprise analysis.
C) information systems plan.
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

D) organizational impact analysis


All of the following are indications of a failed
information systems project except
A) employees are refusing to switch to the new system.
B) employees have created a spreadsheet solution to
manipulate the data generated by the system.
C) a redesigned Web site has fewer visits to the
customer support pages.
D) employees require training to properly use the
system.
D) employees require training to properly use the system.
Which of the following project management variables
indicates how well the project satisfies management
objectives?
A) goals
B) risk
C) quality
D) scope
C) quality
The central method used in a portfolio analysis is to
A) inventory all of the organization's information
systems projects and assets.
B) perform a weighted comparison of the criteria used to
evaluate a system.
C) survey a large sample of managers on their
objectives, decision-making process, and uses and
needs for data and information.
D) interview a small number of top managers to identify
their goals and criteria for achieving success.
A) inventory all of the organization's information systems
projects and assets.
In using a portfolio analysis to determine which IT
projects to pursue, you would
A) select the most low-risk projects from the inventory.
B) limit work to those projects with great rewards.
C) select only low-risk, high-reward projects.

D) balance high-risk, high reward projects with lowerrisk projects.


D) balance high-risk, high reward projects with lower-risk
projects.
Which method would you use to develop risk profiles for
a firm's information system projects and assets?
A) information systems plan
B) scoring model
C) portfolio analysis
D) TCO
C) portfolio analysis
You have been hired by a pharmaceutical company to
evaluate its inventory of systems and IT projects. Which
types of projects would be best avoided?
A) any high-risk projects
B) any low-benefit projects
C) all high-risk, low-benefit projects
D) none, any project might be beneficial
C) all high-risk, low-benefit projects
The central method used in a scoring model is to
A) inventory all of the organization's information
systems projects and assets.
B) perform a weighted comparison of the criteria used to
evaluate a system.
C) survey a large sample of managers on their
objectives, decision-making process, and uses and
needs for data and information.
D) interview a small number of top managers to identify
their goals and criteria for achieving success.
B) perform a weighted comparison of the criteria used to
evaluate a system.
You are using a capital budgeting method to assess the
worth of your company's new information system. Which
of the following costs would you include in measuring
the cash outflow?
A) increased sales of products

B) hardware and software expenditures


C) labor expenditures
D) reduced costs in production and operation
E) both A and D
F) both B and C
G) A, B, C and D
F) both B and C
Which method is used to assign weights to various
features of a system?
A) information systems plan
B) scoring model
C) portfolio analysis
D) TCO
B) scoring model
The criteria used for evaluation in a scoring model are
usually determined by
A) lengthy discussions among the decision-making
group.
B) portfolio analysis.
C) the IS steering committee.
D) systems analysts.
A) lengthy discussions among the decision-making group.
The worth of systems from a financial perspective
essentially revolves around the issue of
A) total cost of ownership.
B) adherence to information requirements.
C) asset utilization.
D) return on invested capital
D) return on invested capital
All of the following are intangible benefits of
information systems except
A) improved asset utilization.
B) increased organizational learning.
C) improved operations.
D) reduced workforce
D) reduced workforce

Which of the following is not a tangible benefit of


information systems?
A) reduced rate of growth in expenses
B) lower computer expenses
C) improved resource control
D) increased productivity
C) improved resource control
The principal capital budgeting models for evaluating
information technology projects are the payback
method, the accounting rate of return on investment
(ROI), the net present value, and the
A) future present value.
B) internal rate of return.
C) external rate of return.
D) ROPM.
B) internal rate of return.
In working with ROPMs 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.
D) right to purchase or sell an asset at a later date at a
fixed price.
ROPMs value information systems similar to stock
options, in that
A) ROPMs can be bought and sold like stocks.
B) a company's worth can be evaluated by the worth of
their ROPMs.
C) initial expenditures on IT projects are seen as
creating the right to pursue and obtain benefits from the
system at a later date.

D) expenditures and benefits from IT projects are seen


as inflows and outflows of cash that can be treated
themselves like options.
C) initial expenditures on IT projects are seen as creating
the right to pursue and obtain benefits from the system at
a later date.
To best evaluate, from a financial standpoint, an IT
investment whose benefits cannot be firmly established
in advance, you would use
A) capital budgeting.
B) the real option pricing model.
C) a scoring model.
D) the net present value
B) the real option pricing model.
Which of the following is a limitation of using a financial
approach to evaluate information systems?
A) inability to measure ROI
B) inability to control vendor costs
C) inability to assess risk
D) inability to assess costs from organizational
disruption
D) inability to assess costs from organizational disruption
Which of the following projects is the riskiest?
A) a project that managers are concerned will affect their
roles and job descriptions
B) a project that requires technical expertise that your
firm's IT employees do not have
C) a project that has a strict deadline, or sales will suffer
D) a project that will automate many clerical duties
A) a project that managers are concerned will affect their
roles and job descriptions
Which of the following statements best describes the
effect that project structure has on overall project risk?
A) Highly structured projects are more complex, and run
a higher risk of programmers and users
misunderstanding the ultimate goals.

B) Projects with relatively undefined goals are more likely


to be subjected to users changing requirements and to
run a higher risk of not satisfying project goals.
C) Highly structured projects tend to be larger, affecting
more organizational units, and run both the risk of outof-control costs and becoming too difficult to control.
D) Less structured projects are more able to be quickly
developed, tested, and implemented using cutting-edge
RAD and JAD development techniques, and pose less
risk of running up unforeseen costs.
B) Projects with relatively undefined goals are more likely
to be subjected to users changing requirements and to
run a higher risk of not satisfying project goals.
The project risk will rise if the project team and the IS
staff lack
A) legacy applications as a starting point.
B) good equipment.
C) the required technical expertise.
D) financial studies and plans.
C) the required technical expertise.
The organizational activities working toward the
adoption, management, and routinization of a new
information system are called
A) production.
B) maintenance.
C) implementation.
D) acceptance
C) implementation.
One example of an implementation problem is
A) poor user interface.
B) inadequate user training.
C) project running over budget.
D) changes in job activities and responsibilities
B) inadequate user training.
According to your reading of the chapter, change
management is a process that

A) should be addressed before a project is developed.


B) begins when a project is implemented.
C) is used primarily to mandate user acceptance.
D) must be addressed in all systems development
A) should be addressed before a project is developed.
Users prefer systems that
A) are oriented to facilitating organizational tasks and
solving business problems.
B) work with existing DBMS.
C) are able to provide optimum hardware and software
efficiency.
D) are capable of storing much more data than they
need.
A) are oriented to facilitating organizational tasks and
solving business problems.
Which of the following is not one of the activities of the
systems analyst?
A) acting as a change agent
B) communication with users
C) mediating between competing interest groups
D) formulation of capital budgeting models
D) formulation of capital budgeting models
Which of the following statistics from studies on failed
projects is not true?
A) Between 30 and 40 percent of software projects fail in
terms of budget, schedule, and quality.
B) Thirty-two percent of technology investments are
completed on time, within budget, and with
requirements met.
C) The average cost overrun of IT projects is 60 percent.
D) One in six IT projects have an average cost overrun of
200 percent.
C) The average cost overrun of IT projects is 60 percent.
Which of the following types of projects is most likely to
fail?
A) integration of a 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
C) a business process redesign project that restructures
workflow and responsibilities
Which of the following is not a responsibility of effective
change management?
A) integrating legacy systems
B) dealing with fear and anxiety about new systems
C) training users of the new system
D) enforcing user participation at all stages of system
development
A) integrating legacy systems
Which of the following tools would you use to control
risk factors in an information systems project?
A) internal integration tools
B) external integration tools
C) formal planning tools and formal control tools
D) A and B
E) A and C
F) all of the above
F) all of the above
Internal integration tools
A) enable a project to have sufficient technical support
for project management and development.
B) enable a project manager to properly document and
monitor project plans.
C) portray a project as a network diagram with
numbered nodes representing project tasks.
D) consist of ways to link the work of the
implementation team with users at all organization
levels.

A) enable a project to have sufficient technical support for


project management and development.
An example of using an internal integration tool would
be to
A) define task dependencies.
B) include user representatives as active members of the
project team.
C) create a PERT chart.
D) hold frequent project team meetings.
D) hold frequent project team meetings.
Formal planning and control tools
A) enable a project to have sufficient technical support
for project management and development.
B) enable a project manager to properly document and
monitor project plans.
C) portray a project as a network diagram with
numbered nodes representing project tasks.
D) consist of ways to link the work of the
implementation team with users at all organization
levels.
B) enable a project manager to properly document and
monitor project plans.
Which type of planning tool shows each task as a
horizontal bar whose length is proportional to the time
required to complete it?
A) PERT chart
B) Gantt chart
C) both A and B
D) neither A nor B
B) Gantt chart
To review a project's tasks and their interrelationships,
you would use a
A) PERT chart.
B) Gantt chart.
C) either A or B.
D) neither A nor B.

A) PERT chart.
Which type of tool helps project managers identify
bottlenecks in project development?
A) internal integration tools
B) external integration tools
C) formal planning and control tools
D) both B and C
C) formal planning and control tools
External integration tools
A) enable a project to have sufficient technical support
for project management and development.
B) enable a project manager to properly document and
monitor project plans.
C) portray a project as a network diagram with
numbered nodes representing project tasks.
D) consist of ways to link the work of the
implementation team with users at all organization
levels.
D) consist of ways to link the work of the implementation
team with users at all organization levels.
An example of using an external integration tool would
be to
A) define task dependencies.
B) include user representatives as active members of the
project team.
C) create a PERT chart.
D) hold frequent project team meetings.
B) include user representatives as active members of the
project team.
Which of the following is not an organizational factor in
systems planning and implementation?
A) standards and performance monitoring
B) government regulatory compliance
C) health and safety
D) user interface
D) user interface

In sociotechnical design
A) separate sets of technical and social design solutions
are developed and compared.
B) ergonomic features of a system and the system's
technical design are given equal importance.
C) systems analysts with proven backgrounds in
sociological concerns rate and compare a system's social
and technical aspects.
D) all of the above
A) separate sets of technical and social design solutions
are developed and compared.
The most widely used project management software
today is
A) Vertabase.
B) IBM Project Guide.
C) Microsoft Project.
D) Microsoft Excel
C) Microsoft Project.
________ refers to the application of knowledge, skills,
tools and techniques to achieve specific targets within
specified budget and time constraints.
Project Mangement
One of the five major variables in project management,
________ is an indicator of how well the project satisfies
management objectives.
quality
A(n) ________ is a method for deciding among alternative
systems based on a system of ratings for selected
objectives
scoring model
The ________ is the part of the system that users interact
with.
user interface

________ methods rely on measures of cash flows into


and out of the firm.
Capital budgeting
A planned series of related activities for achieving a
specific business goal is called a(n) ________.
project
Successful system building requires careful ________
management to minimize organizational resistance.
change
In one strategic approach to determining information
requirements, managers select a small number of
________ that reflect firm success and profitability
KPIs (key performance indicators)
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
communication gap
________ is the interaction of people and machines in the
work environment, including the design of jobs, health
issues, and the end-user interface of information
systems.
Ergonomics
Chap4

The 2012 FTC report on industry-best practices for protecting individuals'


privacy focused on each of the following topics except
A) mobile privacy.
B) phasing out of self-regulatory codes.
C) data brokers.
D) large platform providers.
B

The introduction of new information technology has a


A) dampening effect on the discourse of business ethics.
B) ripple effect raising new ethical, social, and political issues.
C) beneficial effect for society as a whole, while raising dilemmas for
consumers.
D) waterfall effect in raising ever more complex ethical issues.
B

In the information age, the obligations that individuals and organizations


have concerning rights to intellectual property fall within the moral
dimension of
A) property rights and obligations.
B) system quality.
C) accountability and control.
D) information rights and obligations.
A

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) property rights and obligations.
C) system quality.
D) quality of life.
D

The use of computers to combine data from multiple sources and create
electronic dossiers of detailed information on individuals is called
A) profiling.
B) phishing.
C) spamming.
D) targeting.
A

Which of the five moral dimensions of the information age do the central
business activities of ChoicePoint raise?
A) property rights and obligations

B) system quality
C) accountability and control
D) information rights and obligations
D

NORA is a
A) profiling technology used by the EU.
B) federal privacy law protecting networked data.
C) data analysis technology that finds hidden connections between data in
disparate sources.
D) sentencing guideline adopted in 1987 mandating stiff sentences on
business executives.
C

The process in law-governed societies in which laws are known and


understood and there is an ability to appeal to higher authorities to ensure
that the laws are applied correctly is called
A) liability.
B) due process.
C) the courts of appeal.
D) accountability.
B

A colleague of yours frequently takes for his own personal use small
amounts of office supplies, noting that the loss to the company is minimal.
You counter that if everyone were to take the office supplies, the loss would
no longer be minimal. Your rationale expresses which historical ethical
principle?
A) Kant's Categorical Imperative
B) the Golden Rule
C) the Risk Aversion Principle
D) the "No free lunch" rule
A

Immanuel Kant's Categorical Imperative states that


A) if an action cannot be taken repeatedly, then it is not right to be taken at
any time.

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 is not right for everyone to take, it is not right for anyone to
take.
D

FIP principles are based on the notion of the


A) accountability of the record holder.
B) responsibility of the record holder.
C) mutuality of interest between the record holder and the individual.
D) privacy of the individual.
C

The Federal Trade Commission FIP principle of Notice/Awareness states that


A) customers must be allowed to choose how their information will be used
for secondary purposes other than the supporting transaction.
B) data collectors must take responsible steps to assure that consumer
information is accurate and secure from unauthorized use.
C) there is a mechanism in place to enforce FIP principles.
D) Web sites must disclose their information practices before collecting data.
D

Which of the following is not one of the practices added in 2010 by the FTP
to its framework for privacy?
A) Firms should build products and services that protect privacy.
B) Firms should increase the transparency of their data collection.
C) Firms should require consumer consent and provide clear options to opt
out of data collection.
D) Firms should limit the length of time that any personal data is stored to
six months or less.
D

Which of the following U.S. laws gives patients access to personal medical
records and the right to authorize how this information can be used or
disclosed?

A) HIPAA
B) Gramm-Leach-Bliley Act
C) Privacy Protection Act
D) Freedom of Information Act
A

The U.S. Department of Commerce developed a ________ framework in order


to enable U.S. businesses to legally use personal data from EU countries.
A) COPPA
B) P3P
C) PGP
D) safe-harbor
D

Flash cookies are different from ordinary cookies in that they


A) are installed only at the user's request.
B) are not stored on the user's computer.
C) cannot be easily detected or deleted.
D) monitor the user's behavior at a Web site.
C

The Online Privacy Alliance


A) encourages self-regulation to develop a set of privacy guidelines for its
members.
B) protects user privacy during interactions with Web sites.
C) has established technical guidelines for ensuring privacy.
D) is a government agency regulating the use of customer information.
A

A(n) ________ model of informed consent permits the collection of personal


information until the consumer specifically requests that the data not be
collected.
B

Which of the following statements about trade secrets is not true?


A) Trade secret protections vary from state to state.
B) Any intellectual product, regardless of its purpose, can be classified as a

trade secret.
C) Software that contains unique elements can be claimed as a trade secret.
D) Trade secret law protects the actual ideas in a product.
B

What legal mechanism protects the owners of intellectual property from


having their work copied by others?
A) patent protection
B) intellectual property law
C) copyright law
D) Fair Use Doctrine
C

"Look and feel" copyright infringement lawsuits are concerned with


A) the distinction between tangible and intangible ideas.
B) the distinction between an idea and its expression.
C) using the graphical elements of another product.
D) using the creative elements of another product.
B

The strength of patent protection is that it


A) puts the strength of law behind copyright.
B) allows protection from Internet theft of ideas put forth publicly.
C) is easy to define.
D) grants a monopoly on underlying concepts and ideas.
D

Which of the following adjusts copyright laws to the Internet age by making
it illegal to circumvent technology-based protections of copyrighted
materials?
A) Digital Millennium Copyright Act
B) Privacy Act
C) Freedom of Information Act
D) Electronic Communications Privacy Act
A

In general, it is very difficult to hold software producers liable for their


software products when those products are considered to be
A) part of a machine.
B) similar to books.
C) services.
D) artistic expressions.
B

________ are not held liable for the messages they transmit.
A) Regulated common carriers
B) Private individuals
C) Organizations and businesses
D) Elected officials
A

The most common source of business system failure is


A) software bugs.
B) software errors.
C) hardware or facilities failures.
D) data quality.
D

Which of the five moral dimensions of the information age does spamming
raise?
A) quality of life
B) system quality
C) accountability and control
D) information rights and obligations
A

A tiny software object embedded in a Web page and used by tracking


programs to monitor online user behavior is called
A) spyware.
B) a super cookie.
C) a Web beacon.
D) a cookie.
C

Which two of the following issues are privacy advocates and advertising
industry most in conflict over? (Select two of the following.)
A) an opt-in policy required at all sites
B) a national Do-Not-Track list
C) an opt-out policy required at all sites
D) disclosure and transparency in the use of Flash or super cookies
A,B

________ can be induced by tens of thousands of repetitions under lowimpact loads.


A) CTS
B) CVS
C) RSI
D) Technostress
C
21) Which of the following best describes how new information systems result in legal gray
areas?
A) They work with networked, electronic data, which are more difficult to control than
information stored manually.
B) They result in new situations that are not covered by old laws.
C) They are implemented by technicians rather than managers.
D) They are created from sets of logical and technological rules rather than social or
organizational mores.
Answer: B

22) The introduction of new information technology has a


A) dampening effect on the discourse of business ethics.
B) ripple effect raising new ethical, social, and political issues.
C) beneficial effect for society as a whole, while raising dilemmas for consumers.
D) waterfall effect in raising ever more complex ethical issues.
Answer: B

23) In the information age, the obligations that individuals and organizations have
concerning rights to intellectual property fall within the moral dimension of
A) property rights and obligations.

B) system quality.
C) accountability and control.
D) information rights and obligations.
Answer: A

24) 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) property rights and obligations.
C) system quality.
D) quality of life.
Answer: D

25) The four key technical trends responsible for current ethical stresses related to
information technology are (1) doubling of computer power every 18 months, (2) data
analysis advances, (3) declining data storage costs, and (4) ________.
A) advances in wireless networking
B) international standards for data protection
C) networking advances and the Internet
D) increased ease in file sharing and copying
Answer: C

26) The use of computers to combine data from multiple sources and create electronic
dossiers of detailed information on individuals is called
A) profiling.
B) phishing.
C) spamming.
D) targeting.
Answer: A

27) Which of the five moral dimensions of the information age do the central business
activities of ChoicePoint raise?
A) property rights and obligations
B) system quality

C) accountability and control


D) information rights and obligations
Answer: D

28) NORA is a
A) profiling technology used by the EU.
B) federal privacy law protecting networked data.
C) new data analysis technology that finds hidden connections between data in disparate
sources.
D) sentencing guideline adopted in 1987 mandating stiff sentences on business executives.
Answer: C

29) Accepting the potential costs, duties, and obligations for the decisions you make is
referred to as
A) responsibility.
B) accountability.
C) liability.
D) due process.
Answer: A

30) The feature of political systems in which a body of laws is in place that permits
individuals to recover the damages done to them by other actors, systems, or organizations
is referred to as
A) accountability.
B) responsibility.
C) due process.
D) liability.
Answer: D

31) The feature of social institutions that means mechanisms are in place to determine
responsibility for an action is called
A) due process.
B) accountability.
C) the courts of appeal.

D) the judicial system.


Answer: B

32) The process in law-governed societies in which laws are known and understood and
there is an ability to appeal to higher authorities to ensure that the laws are applied correctly
is called
A) liability.
B) due process.
C) the courts of appeal.
D) accountability.
Answer: B

33) Which of the following is notone of the five steps discussed in the chapter as a process
for analyzing an ethical issue?
A) Assign responsibility.
B) Identify the stakeholders.
C) Identify the options you can reasonably take.
D) Identify and clearly describe the facts.
Answer: A

34) A colleague of yours frequently takes for his own personal use small amounts of office
supplies, noting that the loss to the company is minimal. You counter that if everyone were
to take the office supplies, the loss would no longer be minimal. Your rationale expresses
which historical ethical principle?
A) Kant's Categorical Imperative
B) The Golden Rule
C) The Risk Aversion Principle
D) The "No free lunch" rule
Answer: A

35) 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.
Answer: B

36) Immanuel Kant's Categorical Imperative states that


A) if an action cannot be taken repeatedly, then it is not right to be taken at any time.
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 is not right for everyone to take, it is not right for anyone to take.
Answer: D

37) The ethical "no free lunch" rule states that


A) if an action cannot be taken repeatedly, then it is not right to be taken at any time.
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) everything is owned by someone else, and that the creator wants compensation for this
work.
Answer: D

38) According to the ________, you should take the action that produces the least harm.
A) Categorical Imperative
B) Risk Aversion Principle
C) Utilitarian Principle
D) Golden Rule
Answer: B

39) Which U.S. act restricts the information the federal government can collect and regulates
what they can do with the information?
A) Privacy Act of 1974
B) Gramm-Leach-Bliley Act of 1999

C) Freedom of Information Act


D) HIPAA of 1996
Answer: A

40) FIP principles are based on the notion of the


A) accountability of the record holder.
B) responsibility of the record holder.
C) mutuality of interest between the record holder and the individual.
D) privacy of the individual.
Answer: C

41) The Federal Trade Commission FIP principle of Notice/Awareness states that
A) customers must be allowed to choose how their information will be used for secondary
purposes other than the supporting transaction.
B) data collectors must take responsible steps to assure that consumer information is
accurate and secure from unauthorized use.
C) there is a mechanism in place to enforce FIP principles.
D) Web sites must disclose their information practices before collecting data.
Answer: D

42) Which of the following U.S. laws gives patients access to personal medical records and
the right to authorize how this information can be used or disclosed?
A) HIPAA
B) Gramm-Leach-Bliley Act
C) Privacy Protection Act
D) Freedom of Information Act
Answer: A

43) European privacy protection is ________ than in the United States.


A) less far-reaching
B) less liable to laws
C) much less stringent
D) much more stringent
Answer: D

44) The Internet has made the protection of intellectual property

A) more difficult, because of the lack of enforcable regulations.


B) easier, because of the proliferation of creative and professional software.
C) more difficult, because of the ease of copying and transmitting digitized media.
D) easier, because of the ability to track user behavior and visits to Web sites and filesharing services.
Answer: C

45) The U.S. Department of Commerce developed a ________ framework in order to enable
U.S. businesses to legally use personal data from EU countries.
A) COPPA
B) P3P
C) PGP
D) safe-harbor
Answer: D

46) When a cookie is created during a Web site visit, it is stored


A) on the Web site computer.
B) on the visitor's computer.
C) on the ISP's computer.
D) in a Web directory.
Answer: B

47) A(n) ________ model of informed consent permits the collection of personal information
until the consumer specifically requests that the data not be collected.
A) opt-in
B) opt-out
C) P3P
D) PGP
Answer: B

48) The Online Privacy Alliance


A) encourages self-regulation to develop a set of privacy guidelines for its members.
B) protects user privacy during interactions with Web sites.
C) has established technical guidelines for ensuring privacy.
D) is a government agency regulating the use of customer information.

Answer: A

49) The robotics startup you work for has developed an AI-controlled robotic nurse, intended
to care for end-of-life patients who are often unconscious. Which of the five moral
dimensions does this raise?
A) system quality
B) quality of life
C) accountability and control
D) property rights and obligations
Answer: B

50) The P3P standard is concerned with


A) controlling pop-up ads based on user profiles and preventing ads from collecting or
sending information.
B) allowing users to surf the Web anonymously.
C) scrambling data so that it can't be read.
D) blocking or limiting cookies.
Answer: D

51) Intellectual property can best be described as


A) intangible property created by individuals or corporations.
B) the expression of an intangible idea.
C) unique creative work or ideas.
D) tangible or intangible property created from a unique idea.
Answer: A

52) A limitation of trade secret protection for software is that


A) it does not protect against copying the underlying ideas behind the software.
B) it is difficult to compare one piece of software to another.
C) it is difficult to prevent the ideas in the work from falling into the public domain.
D) few software programs contain truly unique elements.
Answer: C

53) What legal mechanism protects the owners of intellectual property from having their work
copied by others?
A) patent protection

B) intellectual property law


C) copyright law
D) fair use doctrine
Answer: C

54) "Look and feel" copyright infringement lawsuits are concerned with
A) the distinction between tangible and intangible ideas.
B) the distinction between an idea and its expression.
C) using the graphical elements of another product.
D) using the creative elements of another product.
Answer: B

55) The strength of patent protection is that it


A) puts the strength of law behind copyright.
B) allows protection from Internet theft of ideas put forth publicly.
C) is easy to define.
D) grants a monopoly on underlying concepts and ideas.
Answer: D

56) 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.
Answer: D

57) Which of the following adjusts copyright laws to the Internet age by making it illegal to
circumvent technology-based protections of copyrighted materials?
A) Digital Millennium Copyright Act
B) Privacy Act
C) Freedom of Information Act
D) Electronic Communications Privacy Act
Answer: A

58) In general, it is very difficult to hold software producers liable for their software products
when those products are considered to be
A) part of a machine.
B) similar to books.
C) services.
D) artistic expressions.
Answer: B

59) It is not feasible for companies to produce error-free software because


A) any programming code is susceptible to error.
B) it is too expensive to create perfect software.
C) errors can be introduced in the maintenance stage of development.
D) any software of any complexity will have errors.
Answer: B

60) The most common source of business system failure is


A) software bugs.
B) software errors.
C) hardware or facilities failures.
D) data quality.
Answer: D

61) Software presents liability problems in terms of legal protections for users because
A) of the difficulty in classifying its role as a machine, a service, or a book.
B) of the inability to review the actual programming behind the software.
C) of its inherent similarity to books and periodicals, and therefore it is protected by the First
Amendment.
D) there are so many parties involved in its creation and distribution.
Answer: A

62) Two of the three principal sources of poor system performance are
A) software bugs and errors and outdated standards.
B) hardware or facility failures and malware.
C) hardware or facility failures and poor input data quality.
D) poor input data quality and insufficient integration with legacy systems.

Answer: C

63) The "do anything anywhere" computing environment can


A) make work environments much more pleasant.
B) create economies of efficiency.
C) centralize power at corporate headquarters.
D) blur the traditional boundaries between work and family time.
Answer: D
64) The practice of spamming has been growing because
A) telephone solicitation is no longer legal.
B) it is good advertising practice and brings in many new customers.
C) it helps pay for the Internet.
D) it is so inexpensive and can reach so many people.
Answer: D
65) The U.S. CAN-SPAM Act of 2003
A) makes spamming illegal.
B) requires spammers to identify themselves.
C) has dramatically cut down spamming.
D) does not override state anti-spamming laws.
Answer: B
66) Which of the five moral dimensions of the information age does spamming raise?
A) quality of life
B) system quality
C) accountability and control
D) information rights and obligations
Answer: A

67) Re-designing and automating business processes can be seen as a double-edged


sword because
A) increases in efficiency may be accompanied by job losses.
B) increases in efficiency may be accompanied by poor data quality.
C) support for middle-management decision making may be offset by poor data quality.
D) reliance on technology results in the loss of hands-on knowledge.
Answer: A

68) The term "________ divide" refers to large disparities in access to computers and the
Internet among different social groups and different locations.
A) computer
B) technology
C) digital
D) electronic
Answer: C
69) ________ can be induced by tens of thousands of repetitions under low-impact loads.
A) CTS
B) CVS
C) RSI
D) Technostress
Answer: C

70) CVS refers to


A) eyestrain related to computer display screen use.
B) carpal vision syndrome.
C) wrist injuries brought about by incorrect hand position when using a keyboard.
D) stress induced by technology.
Answer: A
71) The principles of right and wrong that can be used by individuals acting as free moral
agents to make choices to guide their behavior are called ________.
Answer: ethics
72) The moral dimension of ________ is concerned with the standards that data and
systems should achieve in order to protect individual rights and the safety of society.
Answer: system quality
73) ________ refers to the existence of laws that permit individuals to recover damages
done to them by other actors, systems, or organizations.
Answer: Liability
74) Descartes' rule of change, that if an action cannot be taken repeatedly, it is not right to
take at all, is also known as the ________ rule.
Answer: slippery-slope
75) The ethical principle called ________ asks you to put yourself in the place of others, and
think of yourself as the object of the decision.
Answer: the Golden Rule
76) ________ is permission given with knowledge of all the facts needed to make a rational
decision.

Answer: Informed consent


77) Web ________ are embedded in e-mails and Web pages to monitor user behavior at the
Web site or sending e-mail.
Answer: beacons, bugs
78) The ________ model prohibits an organization from collecting any personal information
unless the individual specifically takes action to approve information collection and use.
Answer: opt-in
79) A(n) ________ is a private, self-regulating policy and enforcement mechanism that
meets the objectives of government regulators but does not involve government
enforcement.
Answer: safe harbor
80) The commission of acts involving the computer that may not be illegal but are
considered unethical is called ________.
Answer: computer abuse

They result in new situations that are not covered by old laws
Which of the following best describes how new information systems result in
legal gray areas?

ripple effect, raising new ethical, social, and political issues


The introduction of new information technology has a

property rights and obligations


In the information age, the obligations that individuals and organizations have
concerning rights to intellectual property fall within the moral dimension of:

quality of life
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:

increase in multimedia quality


All of the following are current key technology trends raising ethical issues
except

profiling

The use of computers to combine data from multiple sources and create
electronic dossiers of detailed information on individuals is called

Information rights and obligations


Which of the five moral dimensions of the information age do the central
business activities of ChoicePoint raise

new data analysis technology that finds hidden connections between data in
disparate sources
NORA is a

responsibility
Accepting the potential costs, duties, and obligations for the decisions you
make is referred to as:

Firms should limit the length of time that any personal data is stored to six
months or less
Which of the following is not one of the practices added in 2010 by the FTC to
its framework for privacy

Accountability
The feature of social institutions that means mechanisms are in place to
determine responsibility for an action is called:

due process
The practice in law-governed societies in which laws are known and
understood, and there is an ability to appeal to higher authorities to ensure
that the laws are applied correctly is called

Assign responsibility
Which of the following is not one of the five steps discussed in the chapter as
a process for analyzing an ethical issue

Kant's Categorical Imperative

A colleague of yours frequently takes, for his own personal use, small
amounts of office supplies noting that the loss to the company is minimal.
You counter that if everyone were to take office supplies the loss would no
longer be minimal. Your rationale expresses which historical ethical principle?

acceptable, because the higher value is the survival of the family


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

if an action is not right for everyone to take, it is not right for anyone to take
Immanuel Kant's Categorical Imperative states that

everything is owned by someone else, and that the creator wants


compensation for this work
The ethical "no free lunch" rule states that

Risk Aversion Principle


According to the ________, you should take the action that produces the least
harm

Privacy Act of 1974


Which U.S. act restricts the information the federal government can collect and
regulates what they can do with the information

mutuality of interest between the record holder and the individual


FIP principles are based on the notion of the

Web sites must disclose their information practices before collecting data
The Federal Trade Commission FIP principle of Notice/Awareness states that:

HIPAA
Which of the following U.S. laws gives patients access to personal medical
records and the right to authorize how this information can be used or
disclosed

much more stringent


European privacy protection is ________ than in the United States

develop equivalent privacy protection policies


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

on the visitor's computer


When a cookie is created during a Web site visit, it is stored

safe-harbour
the U.S. Department of Commerce developed a ________ framework in order to
enable U.S. businesses to legally use personal data from EU countries.

encourages self regulation to develop a set of privacy guidelines for its


members
The Online Privacy Alliance

opt-out
A(n) ________ model of informed consent permits the collection of personal
information until the consumer specifically requests that the data not be
collected.

birthplace
Types of information gathered by Web site tracking tools include all of the
following except

Software products are more easily compared to each other than books.
Which of the following statements does not describe a key difference between
software and books?

the software is widely distributed


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:

intangible property created by individuals or corporations


Intellectual property can best be described as

Copyright law
What legal mechanism protects the owners of intellectual property from
having their work copied by others

the distinction between an idea and its expression


"Look and feel" copyright infringement lawsuits are concerned with:

grants a monopoly on underlying concepts and ideas


The strength of patent protection is that it

the years of waiting to receive it


One of the drawbacks of patent protection is

Digital Millennium Copyright Act


Which of the following adjusts copyright laws to the Internet age by making it
illegal to circumvent technology-based protections of copyrighted materials

similar to books
In general, it is very difficult to hold software producers liable for their
software products when those products are considered to be

Regulated common carriers


________ are not held liable for the messages they transmit

it is too expensive to create perfect software


It is not feasible for companies to produce error-free software because

data quality
The most common source of business system failure is

cannot be easily detected or deleted

Flash cookies are different from ordinary cookies in that they

blur the traditional boundaries between work and family time


The "do anything anywhere" computing environment can

it is so inexpensive and can reach so many people


The practice of spamming has been growing because

requires spammers to identify themselves


The U.S. CAN-SPAM Act of 2003

Quality of life
Which of the five moral dimensions of the information age does spamming
raise?

increases in efficiency may be accompanied by job losses


Re-designing and automating business processes can be seen as a doubleedged sword

digital
The term "________ divide" refers to large disparities in access to computers
and the Internet among different social groups and different locations

yestrain related to computer display screen use


CVS refers to:

RSI
________ can be induced by tens of thousands of repetitions under low-impact
loads.

behavioral targeting
Advertisers use ________ in order to display more relevant ads based on user's
search and browsing history.

the slippery-slope rule


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

opt-in
The ________ model prohibits an organization from collecting any personal
information unless the individual specifically takes action to approve
information collection and use.

patent
A(n) ________ grants the owner an exclusive monopoly on the ideas behind an
invention for 20 years.
Chapter 11

a
What was the primary problem facing the Girl Scouts
regarding their supply chain problems?
A) The ordering process was inefficient for a large volume
of orders.
B) There were high error rates in ordering and fulfillment.
C) It required too much time of volunteers.
D) The paper-based system was outdated.
a
Order the following steps in the systems development
lifecycle in the correct sequence.
A) Systems analysis, systems design, programming,
testing, conversion, production and maintenance
B) Systems analysis, systems design, programming,
conversion, testing, production and maintenance
C) Systems design, systems analysis, programming,
conversion, production and maintenance, and testing
D) Systems design, systems analysis, programming,
testing, conversion, production and maintenance
c
Which of the following is not part of the implementation
process?

A) Evaluating the system


B) Testing
C) Systems analysis
D) Creating detailed design specifications
b
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
a
Developing an information system has been compared to
the problem-solving process. Which one of the following
problem-solving steps is not a part of systems analysis?
A) Implement the solution
B) Choose the best solution
C) Develop alternative solutions
D) Define and understand the problem
d
The entire system-building effort is driven by:
A) organizational change.
B) feasibility studies.
C) data.
D) user information requirements
b
Systems design:
A) identifies the system's information requirements.
B) specifies how the new system will fulfill the information
requirements.
C) identifies alternate solutions for solving the problem.
D) defines the problem and specifies its causes.
b
In a data flow diagram, external entities are represented
by:

A) rounded boxes.
B) square boxes.
C) circles.
D) open rectangles
d
Transferring data from a legacy system to the new system
would be defined by which system design specification
category?
A) Input
B) Database
C) Manual procedures
D) Conversion
a
In object-oriented development:
A) an object combines data and processes that act on the
data into a single object.
B) data is separated into discrete, reusable objects that
any processes may act upon.
C) an object comprises a single, reusable program that
can be combined with other objects to form a robust
application.
D) data categories are described as distinct objects, which
can share characteristics with other objects.
b
Which of the following is not one of the unique
considerations in developing applications for a mobile
platform?
A) Reduced screen space
B) Keyboard configuration
C) User gestures
D) Bandwidth constraints
c
Unit testing:
A) includes all the preparations for the series of tests to
be performed on the system.
B) tests the functioning of the system as a whole.

C) tests each individual program separately.


D) provides the final certification that the system is ready
to be used in a production setting
b
System testing:
A) includes all the preparations for the series of tests to
be performed on the system.
B) tests the functioning of the system as a whole.
C) tests each program separately.
D) provides the final certification that the system is ready
to be used in a production setting
d
Acceptance testing:
A) includes all the preparations for the trials.
B) tests the functioning of the system as a whole.
C) tests each program separately.
D) provides the final certification that the system is ready
to be used in a production setting
c
In a parallel conversion strategy, the new system:
A) is tested by an outsourced company.
B) replaces the old one at an appointed time.
C) and the old are run together.
D) is introduced in stages
b
In a direct cutover conversion strategy, the new system:
A) is tested by an outsourced company.
B) replaces the old one at an appointed time.
C) and the old are run together.
D) is introduced in stages
a
The Girl Scouts' conversion strategy of first introducing
the modules for ordering cookies and then introducing the
modules for transmitting orders and instructions to the
cookie factory and shipper, is called a(n) ________ strategy.

A) phased approach
B) direct cutover
C) indirect cutover
D) incremental conversion
c
Changes in hardware, software, documentation, or
production to a production system to correct errors, meet
new requirements, or improve processing efficiencies are
termed:
A) compliance.
B) production.
C) maintenance.
D) acceptance.
d
The oldest method for building information systems is:
A) component-based development.
B) prototyping.
C) object-oriented development.
D) the systems development lifecycle
d
In the traditional systems development lifecycle, end
users:
A) are important and ongoing members of the team from
the original analysis phase through maintenance.
B) are important only in the testing phases.
C) have no input.
D) are limited to providing information requirements and
reviewing the technical staff's work
b
As a technical project manager you have decided to
propose implementing a prototyping methodology for a
small Web-based design project. What is the order of
steps you will follow in this project?
A) Develop the prototype, use the prototype, revise and
enhance the prototype.
B) Identify user requirements, develop the prototype, use

the prototype, revise and enhance the prototype.


C) Define the requirements, develop solutions, select the
best prototype, and implement the prototype.
D) Define the requirements, develop the prototype, revise
and enhance the prototype
d
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.
a
Of the following, which is the most important reason for
creating a mobile version of a business's Web site?
A) Mobile devices provide access from anywhere.
B) Mobile devices use touch interfaces.
C) Mobile devices use lower bandwidth.
D) Mobile devices use different platforms
c
Management can control the development of end-user
applications in part by:
A) developing a formal development methodology.
B) requiring cost justification for end-user IS projects.
C) establishing standards for project requirements.
D) requiring Gantt charts.
a
If an organization's requirements conflict with the
software package chosen and the package cannot be
customized, the organization should:
A) change its procedures.
B) outsource the development of the system.
C) redesign the RFP.
D) change the evaluation process

a
"Hidden costs," such as ________ costs, can easily undercut
anticipated benefits from outsourcing.
A) vendor selection
B) hardware
C) software
D) employee salary
a
The process of creating workable information systems in a
very short period of time is called:
A) RAD.
B) JAD.
C) prototyping.
D) end-user development
b
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) RAD
B) JAD
C) Prototyping
D) End-user development
c
The term structured, when discussing structured
methodologies, refers to the fact that:
A) the finished software is highly documented.
B) the development process is highly documented.
C) the techniques are step by step, with each step building
on the previous one.
D) a defined hierarchy of objects and classes are used to
structure the programming
d
The primary tool for representing a system's component
processes and the flow of data between them is the:
A) data dictionary.

B) process specifications diagram.


C) user documentation.
D) data flow diagram
d
You are an IT project manager for an advertising firm. The
firm wishes to create an online survey tool that will be
used to survey focus group reactions to products in
development. The most important consideration for the
firm is being able to offer the tool as soon as possible as a
new corporate service. However, you know that many of
the senior managers that are business owners of this
project have difficulty in understanding technical or
software development issues, and are likely to change
their requirements during the course of development.
What development method would be most successful for
this project?
A) RAD
B) JAD
C) End-user development
D) Prototyping
a
To show each level of a system's design, its relationship to
other levels, and its place in the overall design structure,
structured methodologies use:
A) structure charts.
B) Gantt charts and PERT.
C) process specifications diagrams.
D) data flow diagrams.
a
An entire information system is broken down into its main
subsystems by using:
A) high-level data flow diagrams.
B) low-level data flow diagrams.
C) process specifications.
D) structured diagrams
b

In an object-oriented development framework for a


university, how would the classes Degree, Mathematics,
and Physics be related?
A) Degree would be a sister class to Mathematics and
Physics.
B) Degree is a superclass to Mathematics and Physics.
C) Mathematics and Physics would be ancestors to Degree.
D) Degree would be a subclass to Mathematics and
Physics
c
Object-oriented modeling is based on the concepts of:
A) objects and relationships.
B) classes and objects.
C) class and inheritance.
D) objects and inheritance
c
Object-oriented development could potentially reduce the
time and cost of writing software because:
A) object-oriented programming requires less training.
B) iterative prototyping is not required.
C) objects are reusable.
D) a single user interface object can be used for the entire
application
b
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) Object-oriented development
B) Component-based development
C) Structured methodologies
D) RAD
b
Which of the following is a technique used to create Web
sites that will conform to the screen resolution of the
user?

A) Native design
B) Responsive design
C) End-user design
D) Multi-platform design
a
________ provides software tools to automate development
methodologies and reduce the amount of repetitive work
in systems development.
A) CASE
B) CAD
C) JAD
D) RAD
c
________ refers to the application of knowledge, skills,
tools, and techniques to achieve specific targets within
specified budget and time constraints.
A) Systems analysis
B) Systems design
C) Project management
D) Project implementation
a
A PERT chart:
A) portrays a project as a network diagram consisting of
numbered nodes that represent tasks.
B) is used to evaluate project risk and time.
C) displays a horizontal bar for each project task.
D) tracks progress of, and modifications to, project tasks
b
________ are tangible benefits of information systems.
A) Improved asset utilization, increased organizational
learning, and improved operations
B) Reduced workforce, lower outside vendor costs, and
increased productivity
C) Increased productivity, reduced workforce, and
increased job satisfaction

D) Lower operational costs, improved resource control,


and more information
a
________ are intangible benefits of information systems.
A) Improved asset utilization, increased organizational
learning, and improved operations
B) Reduced workforce, lower outside vendor costs, and
increased productivity
C) Increased productivity, reduced workforce, and
increased job satisfaction
D) Lower operational costs, improved resource control,
and more information
c
Which process is used to develop risk profiles for a firm's
information system projects and assets?
A) Information systems plan
B) Scoring model
C) Portfolio analysis
D) Feasibility study
c
You have been hired by a pharmaceutical company to
evaluate its portfolio of systems and IT projects. Which
types of projects would be best avoided?
A) Any high-risk projects
B) Any low-benefit projects
C) High-risk, low-benefit projects
D) None - any project might be beneficial
c
You would expect to find all of the following in an
information systems plan except:
A) key business processes.
B) budget requirements.
C) portfolio analysis.
D) milestones and planning
c

The project risk will rise if the project team and the IS staff
lack:
A) RAD experience.
B) web services.
C) the required technical expertise.
D) CASE tools.
a
Users prefer systems that:
A) are oriented to facilitating organizational tasks and
solving business problems.
B) work with existing DBMS.
C) are able to provide optimum hardware and software
efficiency.
D) are capable of storing much more data than they need
d
A ________ shows each task as a horizontal bar whose
length is proportional to the time required to complete it.
A) PERT chart
B) DFD
C) feasibility study
D) Gantt chart
b
Which of the following tools may help identify risk areas
associated with employee acceptance of a new information
system?
A) Formal planning software
B) Organizational impact analysis
C) System prototype
D) Feasibility study
c
A systems analysis includes a ________ that is used to
determine whether the solution is achievable from a
financial, technical, and organizational standpoint.
A) test plan
B) conversion plan

C) feasibility study
D) risk analysis
true
t/f A test plan includes all the preparations for the series
of tests to be performed on the system.
d
Which of the following Web development languages is
used for mobile applications because it supports crossplatform mobile applications?
A) Java
B) Javascript
C) XML
D) HTML5
false
t/f A prototype is the final working version of an
information system
a
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) RFQ
C) RAD
D) JAD
true
t/f PaaS are online development environments that enable
developers to quickly write customer- or employee-facing
Web applications
a
________ describe the transformation occurring within the
lowest level of the data flow diagrams. They express the
logic of each process.
A) Process specifications
B) Structure charts

C) DFDs
D) Component procedures
true
t/f A reduced workforce is an example of a tangible
benefit of an information system
a
________ is a method for deciding among alternative
systems based on a system of ratings for selected
objectives.
A) A scoring model
B) A scorecard
C) Portfolio analysis
D) Risk analysis
21) Based on your reading of the chapter case
discussing PC Connection, their implementation of a
new order fulfillment system is an example of
A. BPR.
B. rationalization of procedures.
C. automation.
D. a paradigm shift.
B
22) The four kinds of structural organizational change
enabled by IT, in order from least to most risky, are
A. rationalization, automation, reengineering, and
redesigning.
B. rationalization, automation, reengineering, and
paradigm shift.
C. automation, rationalization, reengineering, and
paradigm shift.
D. automation, redesigning, restructuring, and
paradigm shift.
C
23) Business processes are analyzed, simplified, and
redesigned in

A. BPR.
B. rationalization of procedures.
C. automation.
D. a paradigm shift.
A
24) In automation
A. business processes are simplified.
B. business processes are reorganized to cut waste and
eliminate repetitive, paper-intensive tasks.
C. standard operating procedures are streamlined to
remove bottlenecks.
D. employees are enabled to perform their tasks more
efficiently.
D
25) Based on your reading of the chapter, the redesign
of mortgage application process by major mortgage
banks was an example of which type of organizational
change?
A. automation
B. paradigm shift
C. business process reengineering
D. restructuring
B
26) The process of streamlining business procedures so
that documents can be moved easily and efficiently is
called A. business process reengineering B. automation
C. work flow management D. rationalization
C
27) Which of the following statements about business
process reengineering is NOT true?
A. It is primarily an ongoing effort by a firm that
continually readjusts and measures the effectiveness of
new procedures.
B. It typically focuses on one or two strategic business
processes that need radical change.

C. BPR projects tend to be expensive and


organizationally disruptive.
D. To judge effectiveness, the performance of a business
process should be measured both before and after
reengineering.
A
28) ________ provide(s) a methodology and tools for
dealing with the organization's ongoing need to
reviseand ideally optimizeits numerous internal business
processes and processes shared with other
organizations.
A. BPR
B. BPM
C. CASE tools
D. TQM
B
29) Enabling organizations to make continual
improvements to many business processes and to use
processes as the fundamental building blocks of
corporate information systems is the goal of
A. BPM.
B. BPR.
C. reengineering.
D. work flow management.
A
30) The idea that the achievement of quality control is
an end in itself describes a main concept of
A. BPM.
B. BPR.
C. six sigma.
D. TQM.
D
31) 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
B
32) The entire system-building effort is driven by
A. organizational change.
B. feasibility studies.
C. the information value chain.
D. user information requirements.
D
33) Systems design:
A. describes what a system should do to meet
information requirements.
B. shows how the new system will fulfill the information
requirements.
C. identifies which users need what information, where,
when and how.
D. is concerned with the logical view of the system
solution.
B
34) System design specifications that address the
category of database design issues will include
specifications for
A. transaction volume and speed requirements.
B. data entry.
C. job design.
D. program logic and computations.
A
35) Transferring data from a legacy system to the new
system would be defined by which category of system
design specifications?
A. input
B. database
C. manual procedures
D. conversion
D

36) Determining methods for feedback and error


handling would be defined by which category of system
design specifications?
A. training and documentation
B. user interface
C. manual procedures
D. security and controls
B
37) Unit testing
A. includes all the preparations for the series of tests to
be performed on the system.
B. tests the functioning of the system as a whole in order
to determine if discrete modules will function together
as planned.
C. tests each program separately.
D. provides the final certification that the system is
ready to be used in a production setting.
C
38) System testing
A. includes all the preparations for the series of tests to
be performed on the system.
B. tests the functioning of the system as a whole in order
to determine if discrete modules will function together
as planned.
C. tests each program separately.
D. provides the final certification that the system is
ready to be used in a production setting.
B
39) Acceptance testing
A. includes all the preparations for the series of tests to
be performed on the system.
B. tests the functioning of the system as a whole in order
to determine if discrete modules will function together
as planned.
C. tests each program separately.
D. provides the final certification that the system is
ready to be used in a production setting.

D
40) In a parallel conversion strategy, the new system
A. is tested by an outsourced company.
B. replaces the old one at an appointed time.
C. and the old are run together.
D. is introduced in stages.
C
41) In the direct cutover conversion strategy, the new
system
A. is tested by an outsourced company.
B. replaces the old one at an appointed time.
C. and the old are run together.
D. is introduced in stages.
B
42) Changes in hardware, software, documentation, or
production to a production system to correct errors,
meet new requirements, or improve processing
efficiencies are termed
A. compliance.
B. production.
C. maintenance.
D. acceptance.
C
43) In what stage of systems development are design
specifications created?
A. systems analysis
B. systems design
C. testing
D. conversion
B
44) The primary tool for representing a system's
component processes and the flow of data between
them is the
A. data dictionary.
B. process specifications diagram.

C. user documentation.
D. data flow diagram.
D
45) To understand and define the contents of data flows
and data store, system builders use
A. a data dictionary.
B. process specifications diagrams.
C. user documentation.
D. data flow diagrams.
A
46) To show each level of a system's design, its
relationship to other levels, and its place in the overall
design structure, structured methodologies use
A. structure charts.
B. Gantt and PERT charts.
C. process specifications.
D. data flow diagrams.
A
47) An entire information system is broken down into its
subsystems by using
A. high-level data flow diagrams.
B. low-level data flow diagrams.
C. process specifications.
D. structured diagrams.
A
48) In object-oriented development
A. the class is used as the basic unit of systems analysis
and design.
B. an object is a collection of data that is acted on by
external processes.
C. processing logic resides within objects.
D. a strict, step-by-step development process is
essential.
C

49) In an object-oriented development framework for a


university, how would the classes Degree, Mathematics,
and Physics be related?
A. Degree would be a sister class to Mathematics and
Physics.
B. Degree is a superclass to Mathematics and Physics.
C. Mathematics and Physics would be ancestors to
Degree.
D. Degree would be a subclass to Mathematics and
Physics.
B
50) Object-oriented modeling is based on the concepts
of
A. objects and relationships.
B. classes and objects.
C. class and inheritance.
D. objects and inheritance.
C
51) Object-oriented development could potentially
reduce the time and cost of writing software because
A. object-oriented programming requires less training.
B. iterative prototyping is not required.
C. objects are reusable.
D. a single user interface object can be used for the
entire application.
C
52) CASE tools automate
A. the tedious and error-prone portions of analysis and
design.
B. code generation.
C. testing.
D. all of the above.
D
53) The oldest method for building information systems
is
A. component-based development.

B. prototyping.
C. object-oriented development.
D. the systems development lifecycle.
D
54) In the traditional systems development lifecycle, end
users:
A. are important and ongoing members of the team
from the original analysis phase through maintenance.
B. are important only in the testing phases.
C. have no input.
D. are limited to providing information requirements and
reviewing the technical staff's work.
D
55) In which type of systems building are the
development stages organized so that tasks in one stage
are completed before the tasks in the next stage begun?
A. traditional
B. prototyping
C. RAD
D. All of the above
A
56) As a technical project manager you have decided to
propose implementing a prototyping methodology for a
small Web-based design project. What is the order of
steps you will follow in this project?
A. Develop the prototype; use the prototype; revise and
enhance the prototype.
B. Identify user requirements, develop the prototype, use
the prototype, revise and enhance the prototype.
C. Define the requirements, develop solutions, select the
best prototype, and implement the prototype.
D. Define the requirements, develop the prototype,
revise and enhance the prototype.
B
57) 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.
B
58) Which type of fourth-generation language tools are
end-users most likely to work with?
A. report generators and query languages
B. report generators and application generators
C. PC software tools and query languages
D. PC software tools and report generators
C
59) Which type of fourth-generation language tool
contains preprogrammed modules that can be used to
create entire applications?
A. PC software tools
B. report generators
C. application generators
D. application software packages
C
60) 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.
D
61) Management should control the development of
end-user applications by
A. developing a formal development methodology.
B. requiring cost justification for end-user IS projects.
C. establishing standards for user-developed
applications.

D. both B and C. E. both A and B.


D
62) Fourth-generation tools cannot replace conventional
development tools because they
A. cannot handle large numbers of transactions or
extensive logic. procedural
B. are not designed to integrate with legacy systems.
C. do not incorporate methods for documentation.
D. do not incorporate methods for testing.
A
63) If an organization's requirements conflict with the
software package chosen and the package cannot be
customized, the organization will have to
A. change its procedures.
B. outsource the development of the system.
C. redesign the RFP.
D. change the evaluation process.
A
64) Hidden costs such as ________ can easily undercut
anticipated benefits from outsourcing.
A. monitoring vendors to make sure they often are
fulfilling their contractual obligations
B. transitioning to a new vendor
C. identifying and evaluating vendors of information
technology services
D. all of the above
D
65) 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.
A

66) Which type of systems development is characterized


by significantly speeding up the design phase and the
generation of information requirements and involving
users at an intense level?
A. RAD
B. JAD
C. prototyping
D. end-user development
B
67) You are an IT project manager for an advertising
firm. The firm wishes to create an online tool that will be
used to survey focus group reactions to products in
development. The most important consideration for the
firm is being able to offer the tool as soon as possible as
a new corporate service. However, you know that many
of the senior managers that are business owners of this
project have difficulty in understanding technical or
software development issues, and are likely to change
their requirements during the course of development.
What development method would be most successful for
this project?
A. RAD
B. JAD
C. end-user development
D. prototyping
D
68) 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. object-oriented development
B. component-based development
C. structured methodologies
D. RAD
B

69) 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.
B
70) ________ development focuses on rapid delivery of
working software by breaking a large project into a
series of small sub-projects that are completed in short
periods of time using iteration and continuous feedback.
A. Agile
B. Rapid application
C. Joint application
D. Object-oriented
A

21) The four kinds of structural organizational change


enabled by IT, in order from least to most risky, are
A) rationalization, automation, reengineering, and
redesigning.
B) rationalization, automation, reengineering, and
paradigm shift.
C) automation, rationalization, reengineering, and
paradigm shift.
D) automation, redesigning, restructuring, and paradigm
shift.
C
22) In automation
A) business processes are simplified.
B) business processes are reorganized to cut waste and
eliminate repetitive, paper-intensive tasks.
C) standard operating procedures are streamlined to
remove bottlenecks.

D) employees are enabled to perform their tasks more


efficiently.
D
23) Business processes are analyzed, simplified, and
redesigned in
A) business process redesign.
B) rationalization of procedures.
C) automation.
D) paradigm shifts.
A
24) A bank has reworked its mortgage application
process so that several steps are handled by computer
software, and some steps are combined to reduce
bottlenecks in processing. The goal is to gradually
improve its efficiency over time. This is an example of
A) automation.
B) rationalization of procedures.
C) paradigm shift.
D) business process redesign.
B
25) An upscale organic foods grocery chain is
implementing an information system that will enable it
to add same-day home delivery of groceries to its
customers. This is an example of
A) automation.
B) rationalization of procedures.
C) paradigm shift.
D) business process redesign.
C
26) The idea that the achievement of quality control is
an end in itself describes a main concept of
A) BPM.
B) BPR.
C) six sigma.
D) TQM.
D

27) ________ provide(s) a methodology and tools for


dealing with the organization's ongoing need to revise
and optimize its numerous business processes.
A) Business process redesign
B) Business process management
C) CASE tools
D) TQM
B
28) Which conversion process introduces the system
first to a limited portion of the organization?
A) the pilot study strategy
B) the phased approach strategy
C) the limited cutover strategy
D) the parallel strategy
A
29) In order, what are the first three steps in BPM?
A) 1. identifying processes for change, 2. analyzing
existing processes, 3. designing the new process.
B) 1. analyzing existing processes, 2. identifying
processes for change, 3. designing the new process.
C) 1. identifying processes for change, 2. designing the
new process, 3. implementing the new process.
D) 1. analyzing processes to change, 2. designing the
new process, 3. measuring the optimized process.
A
30) What is the greatest barrier to successful business
process change?
A) ineffective project management
B) usability of implemented solution
C) selecting the correct process to change
D) organizational change
D
31) Categories of tools for BPM include all of the
following except
A) tools to integrate existing systems to support

business processes' improvements.


B) tools to automate business processes.
C) tools to identify and document business processes.
D) tools to test the security of business processes.
D
32) 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
B
33) Systems design
A) describes what a system should do to meet
information requirements.
B) shows how the new system will fulfill the information
requirements.
C) identifies which users need what information, where,
when and how.
D) is concerned with the logical view of the system
solution.
B
34) What is the purpose of responsive Web design?
A) It allows one Web site to serve different platforms,
such as tablets, PCs, and mobile phones.
B) It allows Web sites to respond quickly to changing
user needs.
C) It enables Web sites to customize design according to
user preferences.
D) It enables Web sites to customize content based on
user location and preferences
A
35) Transferring data from a legacy system to the new
system would be defined by which category of system
design specifications?
A) input

B) database
C) manual procedures
D) conversion
D
36) Which of the following is not an example of fourth
generation development tools?
A) Microsoft Excel
B) graphics software, such as Photoshop
C) report generator
D) very high-level programming language
B
37) The entire system-building effort is driven by
A) organizational change.
B) feasibility studies.
C) the information value chain.
D) user information requirements.
D
38) Unit testing
A) includes all the preparations for the series of tests to
be performed on the system.
B) tests the functioning of the system as a whole in
order to determine if discrete modules will function
together as planned.
C) tests each program separately.
D) provides the final certification that the system is
ready to be used in a production setting.
C
39) System testing
A) includes all the preparations for the series of tests to
be performed on the system.
B) tests the functioning of the system as a whole in
order to determine if discrete modules will function
together as planned.
C) tests each program separately.
D) provides the final certification that the system is
ready to be used in a production setting.

B
40) Acceptance testing
A) includes all the preparations for the series of tests to
be performed on the system.
B) tests the functioning of the system as a whole in
order to determine if discrete modules will function
together as planned.
C) tests each program separately.
D) provides the final certification that the system is
ready to be used in a production setting.
D
41) In a parallel conversion strategy, the new system
A) is tested by an outsourced company.
B) replaces the old one at an appointed time.
C) and the old are run together.
D) is introduced in stages.
C
42) In the direct cutover conversion strategy, the new
system
A) is tested by an outsourced company.
B) replaces the old one at an appointed time.
C) and the old are run together.
D) is introduced in stages.
B
43) Changes in hardware, software, documentation, or
production to a production system to correct errors,
meet new requirements, or improve processing
efficiencies are termed
A) compliance.
B) production.
C) maintenance.
D) acceptance.
C
44) In what stage of systems development are design
specifications created?

A) systems analysis
B) systems design
C) testing
D) conversion
B
45) The primary tool for representing a system's
component processes and the flow of data between
them is the
A) data dictionary.
B) process specifications diagram.
C) user documentation.
D) data flow diagram.
D
46) An entire information system is broken down into its
subsystems by using
A) high-level data flow diagrams.
B) low-level data flow diagrams.
C) process specifications.
D) structured diagrams.
A
47) To understand and define the contents of data flows
and data store, system builders use
A) a data dictionary.
B) process specifications diagrams.
C) user documentation.
D) data flow diagrams.
A
48) To show each level of a system's design, its
relationship to other levels, and its place in the overall
design structure, structured methodologies use
A) structure charts.
B) Gantt and PERT charts.
C) process specifications.
D) data flow diagrams.
A

49) In object-oriented development


A) the class is used as the basic unit of systems analysis
and design.
B) an object is a collection of data that is acted on by
external processes.
C) processing logic resides within objects.
D) a strict, step-by-step development process is
essential.
C
50) In an object-oriented development framework for a
university, how would the classes Degree, Mathematics,
and Physics be related?
A) Degree would be a sister class to Mathematics and
Physics.
B) Degree is a superclass to Mathematics and Physics.
C) Mathematics and Physics would be ancestors to
Degree.
D) Degree would be a subclass to Mathematics and
Physics.
B
51) Object-oriented modeling is based on the concepts
of
A) objects and relationships.
B) classes and objects.
C) class and inheritance.
D) objects and inheritance.
C
52) Object-oriented development could potentially
reduce the time and cost of writing software because
A) object-oriented programming requires less training.
B) iterative prototyping is not required.
C) objects are reusable.
D) a single user interface object can be used for the
entire application.
C

53) CASE tools automate


A) documentation.
B) code generation.
C) creating data dictionaries.
D) all of the above.
D
54) The oldest method for building information systems
is
A) component-based development.
B) prototyping.
C) object-oriented development.
D) the systems development lifecycle.
D
55) In the traditional systems development lifecycle, end
users
A) are important and ongoing members of the team
from the original analysis phase through maintenance.
B) are important only in the testing phases.
C) have no input.
D) are limited to providing information requirements and
reviewing the technical staff's work.
D
56) In which type of systems building are the
development stages organized so that tasks in one stage
are completed before the tasks in the next stage begin?
A) traditional
B) prototyping
C) RAD
D) all of the above
A
57) As a technical project manager, you have decided to
propose implementing a prototyping methodology for a
small Web-based design project. What is the order of
steps you will follow in this project?
A) Develop the prototype; use the prototype; revise and
enhance the prototype.

B) Identify user requirements, develop the prototype, use


the prototype, revise and enhance the prototype.
C) Define the requirements, develop solutions, select the
best prototype, and implement the prototype.
D) Define the requirements, develop the prototype,
revise and enhance the prototype.
B
58) You are an IT project manager for an advertising
firm. The firm wishes to create an online tool that will be
used to survey focus group reactions to products in
development. The most important consideration for the
firm is being able to offer the tool as soon as possible as
a new corporate service. However, you know that many
of the senior managers that are business owners of this
project have difficulty in understanding technical or
software development issues, and are likely to change
their requirements during the course of development.
What development method would be most successful for
this project?
A) RAD
B) JAD
C) end-user development
D) prototyping
D
59) 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.
B
60) Which type of fourth-generation language tools are
end users most likely to work with?
A) report generators and query languages
B) report generators and application generators

C) PC software tools and query languages


D) PC software tools and report generators
C
61) Which type of fourth-generation language tool
contains preprogrammed modules that can be used to
create entire applications?
A) PC software tools
B) report generators
C) application generators
D) application software packages
C
62) Fourth-generation tools cannot replace conventional
development tools because they
A) cannot handle large numbers of transactions or
extensive procedural logic.
B) are not designed to integrate with legacy systems.
C) do not incorporate methods for documentation.
D) do not incorporate methods for testing.
A
63) 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
D
64) Which of the following is not a top priority in mobile
application development?
A) designing for multitouch
B) saving resources
C) limiting the use of keyboards
D) designing for keyboard data entry
D

65) What is the primary driving factor in firms to select


domestic outsourcing firms to build system solutions?
A) to take advantage of technical skills the firm does not
have
B) to save labor costs
C) to avoid change management issues
D) all of the above
A
66) 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.
A
67) Which type of systems development is characterized
by significantly speeding up the design phase and the
generation of information requirements and involving
users at an intense level?
A) RAD
B) JAD
C) prototyping
D) end-user development
B
68) 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) object-oriented development
B) component-based development
C) structured methodologies
D) RAD
B
69) ________ development focuses on rapid delivery of
working software by breaking a large project into a
series of small sub-projects that are completed in short

periods of time using iteration and continuous


feedback.
A) Agile
B) Rapid application
C) Joint application
D) Object-oriented
A
70) 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.
B

Based on your reading of the chapter case discussing PC


Connection, their implementation of a new order
fulfillment system is an example of:
Rationalization of procedures
The four kinds of structural organizational change
enabled by IT, in order from least to most risky, are:
automation, rationalization, reengineering, and paradigm
shift.
Business processes are analyzed, simplified, and
redesigned in:
BPR
In automation:
employees are enabled to perform their tasks more
efficiently.

Based on your reading of the chapter, the redesign of


mortgage application process by major mortgage banks
was an example of which type of organizational change?
paradigm shift
The process of streamlining business procedures so that
documents can be moved easily and efficiently is called:
work flow management
Which of the following statements about business
process reengineering is NOT true?
It is primarily an ongoing effort by a firm that continually
readjusts and measures the effectiveness of new
procedures.
________ provide(s) a methodology and tools for dealing
with the organization's ongoing need to reviseand
ideally optimizeits numerous internal business
processes and processes shared with other
organizations.
BPM
Enabling organizations to make continual improvements
to many business processes and to use processes as the
fundamental building blocks of corporate information
systems is the goal of:
BPM
The idea that the achievement of quality control is an
end in itself describes a main concept of:
TQM
Which process develops a detailed description of the
functions that a new information system must perform?
requirements analysis
The entire system-building effort is driven by:
feasibility studies

Systems design:
shows how the new system will fulfill the information
requirements.
System design specifications that address the category
of database design issues will include specifications for:
transaction volume and speed requirements.
Transferring data from a legacy system to the new
system would be defined by which category of system
design specifications?
conversion
Determining methods for feedback and error handling
would be defined by which category of system design
specifications?
user interface
Unit testing:
tests each program separately.
System testing:
tests the functioning of the system as a whole in order to
determine if discrete modules will function together as
planned.
Acceptance testing:
provides the final certification that the system is ready to
be used in a production setting.
In a parallel conversion strategy, the new system:
and the old are run together.
In the direct cutover conversion strategy, the new
system:
replaces the old one at an appointed time.
Changes in hardware, software, documentation, or
production to a production system to correct errors,

meet new requirements, or improve processing


efficiencies are termed:
maintenance
In what stage of systems development are design
specifications created?
systems design
The primary tool for representing a system's component
processes and the flow of data between them is the:
data flow diagram
To understand and define the contents of data flows and
data store, system builders use:
a data dictionary
To show each level of a system's design, its relationship
to other levels, and its place in the overall design
structure, structured methodologies use:
structure charts
An entire information system is broken down into its
subsystems by using:
high-level data flow diagrams
In object-oriented development:
processing logic resides within objects
In an object-oriented development framework for a
university, how would the classes Degree, Mathematics,
and Physics be related?
Degree is a superclass to Mathematics and Physics.
Object-oriented modeling is based on the concepts of:
class and inheritance
Object-oriented development could potentially reduce
the time and cost of writing software because:
objects are reusable

CASE tools automate:


The tedious and error-prone portions of analysis and
design, code generation, and testing. (ALL OF THE ABOVE)
The oldest method for building information systems is:
the systems development lifecycle
In the traditional systems development lifecycle, end
users:
are limited to providing information requirements and
reviewing the technical staff's work.
In which type of systems building are the development
stages organized so that tasks in one stage are
completed before the tasks in the next stage begun?
traditional
As a technical project manager you have decided to
propose implementing a prototyping methodology for a
small Web-based design project. What is the order of
steps you will follow in this project?
Identify user requirements, develop the prototype, use the
prototype, revise and enhance the prototype.
A systems building approach in which the system is
developed as successive versions, each version
reflecting requirements more accurately, is described to
be:
iterative
Which type of fourth-generation language tools are endusers most likely to work with?
PC software tools and query languages
Which type of fourth-generation language tool contains
preprogrammed modules that can be used to create
entire applications?
application generators

When systems are created rapidly, without a formal


development methodology:
testing and documentation may be inadequate.
Management should control the development of enduser applications by:
Requiring cost justification for end-user IS projects and
establishing standards from user-developed applications.
(Both B AND C)
Fourth-generation tools cannot replace conventional
development tools because they:
cannot handle large numbers of transactions or extensive
procedural logic.
If an organization's requirements conflict with the
software package chosen and the package cannot be
customized, the organization will have to:
change its procedures
Hidden costs such as ________ can easily undercut
anticipated benefits from outsourcing.
Monitoring vendors to make sure they often are fulfilling
their contractual obligations, transitioning to a new
vendor, and identifying and evaluating vendors of
information technology services. (ALL OF THE ABOVE).
The process of creating workable information systems in
a very short period of time is called:
RAD
Which type of systems development is characterized by
significantly speeding up the design phase and the
generation of information requirements and involving
users at an intense level?
JAD

You are an IT project manager for an advertising firm.


The firm wishes to create an online tool that will be used
to survey focus group reactions to products in
development. The most important consideration for the
firm is being able to offer the tool as soon as possible as
a new corporate service. However, you know that many
of the senior managers that are business owners of this
project have difficulty in understanding technical or
software development issues, and are likely to change
their requirements during the course of development.
What development method would be most successful for
this project?
prototyping
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?
component-based development
Compared to the use of proprietary components, Web
services promise to be less expensive and less difficult
to implement because of:
the use of universal standards
________ development focuses on rapid delivery of
working software by breaking a large project into a
series of small sub-projects that are completed in short
periods of time using iteration and continuous feedback.
agile
Chap11
21) What is the primary driving factor in firms to select domestic outsourcing firms to build
system solutions?
A) to take advantage of technical skills the firm does not have
B) to save labor costs
C) to avoid change management issues
D) all of the above

Answer: A
22) The four kinds of structural organizational change enabled by IT, in order from least to
most risky, are
A) rationalization, automation, reengineering, and redesigning.
B) rationalization, automation, reengineering, and paradigm shift.
C) automation, rationalization, reengineering, and paradigm shift.
D) automation, redesigning, restructuring, and paradigm shift.
Answer: C
23) Business processes are analyzed, simplified, and redesigned in
A) business process redesign.
B) rationalization of procedures.
C) automation.
D) paradigm shifts.
Answer: A
24) In automation
A) business processes are simplified.
B) business processes are reorganized to cut waste and eliminate repetitive, paper-intensive
tasks.
C) standard operating procedures are streamlined to remove bottlenecks.
D) employees are enabled to perform their tasks more efficiently.
Answer: D
25) A bank has reworked its mortgage application process so that several steps are handled
by computer software, and some steps are combined to reduce bottlenecks in processing.
The goal is to gradually improve its efficiency over time. This is an example of
A) automation.
B) rationalization of procedures.
C) paradigm shift.
D) business process redesign.
Answer: B

26) An upscale organic foods grocery chain is implementing an information system that will
enable it to add same-day home delivery of groceries to its customers. This is an example of
A) automation.
B) rationalization of procedures.
C) paradigm shift.
D) business process redesign.
Answer: C
27) In order, what are the first three steps in BPM?
A) (1) identifying processes for change, (2) analyzing existing processes, (3) designing the
new process
B) (1) analyzing existing processes, (2) identifying processes for change, (3) designing the
new process
C) (1) identifying processes for change, (2) designing the new process, (3) implementing the
new process
D) (1) analyzing processes to change (2) designing the new process, (3) measuring the
optimized process
Answer: A
28) ________ provide(s) a methodology and tools for dealing with the organization's ongoing
need to revise and optimize its numerous business processes.
A) Business process redesign
B) Business process management
C) CASE tools
D) TQM
Answer: B
29) The idea that the achievement of quality control is an end in itself describes a main
concept of
A) BPM.
B) BPR.
C) six sigma.
D) TQM.
Answer: D

30) 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
Answer: B

31) The entire system-building effort is driven by


A) organizational change.
B) feasibility studies.
C) the information value chain.
D) user information requirements.
Answer: D
32) Systems design
A) describes what a system should do to meet information requirements.
B) shows how the new system will fulfill the information requirements.
C) identifies which users need what information, where, when and how.
D) is concerned with the logical view of the system solution.
Answer: B

33) System design specifications that address the category of database design issues will
include specifications for
A) transaction volume and speed requirements.
B) data entry.
C) job design.
D) program logic and computations.
Answer: A
34) Enabling organizations to make continual improvements to many business processes
and to use processes as the fundamental building blocks of corporate information systems is
the goal of

A) business process management.


B) business process redesign.
C) workflow engineering.
D) workflow management.
Answer: A

35) Transferring data from a legacy system to the new system would be defined by which
category of system design specifications?
A) input
B) database
C) manual procedures
D) conversion
Answer: D

36) Determining methods for feedback and error handling would be defined by which
category of system design specifications?
A) training and documentation
B) user interface
C) manual procedures
D) security and controls
Answer: B

37) Unit testing


A) includes all the preparations for the series of tests to be performed on the system.
B) tests the functioning of the system as a whole in order to determine if discrete modules
will function together as planned.
C) tests each program separately.
D) provides the final certification that the system is ready to be used in a production setting.
Answer: C

38) System testing


A) includes all the preparations for the series of tests to be performed on the system.

B) tests the functioning of the system as a whole in order to determine if discrete modules
will function together as planned.
C) tests each program separately.
D) provides the final certification that the system is ready to be used in a production setting.
Answer: B
39) Acceptance testing
A) includes all the preparations for the series of tests to be performed on the system.
B) tests the functioning of the system as a whole in order to determine if discrete modules
will function together as planned.
C) tests each program separately.
D) provides the final certification that the system is ready to be used in a production setting.
Answer: D
40) In a parallel conversion strategy, the new system
A) is tested by an outsourced company.
B) replaces the old one at an appointed time.
C) and the old are run together.
D) is introduced in stages.
Answer: C
41) In the direct cutover conversion strategy, the new system
A) is tested by an outsourced company.
B) replaces the old one at an appointed time.
C) and the old are run together.
D) is introduced in stages.
Answer: B
42) Changes in hardware, software, documentation, or production to a production system to
correct errors, meet new requirements, or improve processing efficiencies are termed
A) compliance.
B) production.
C) maintenance.
D) acceptance.

Answer: C
43) In what stage of systems development are design specifications created?
A) systems analysis
B) systems design
C) testing
D) conversion
Answer: B
44) The primary tool for representing a system's component processes and the flow of data
between them is the
A) data dictionary.
B) process specifications diagram.
C) user documentation.
D) data flow diagram.
Answer: D
45) To understand and define the contents of data flows and data store, system builders use
A) a data dictionary.
B) process specifications diagrams.
C) user documentation.
D) data flow diagrams.
Answer: A
46) To show each level of a system's design, its relationship to other levels, and its place in
the overall design structure, structured methodologies use
A) structure charts.
B) Gantt and PERT charts.
C) process specifications.
D) data flow diagrams.
Answer: A
47) An entire information system is broken down into its subsystems by using
A) high-level data flow diagrams.

B) low-level data flow diagrams.


C) process specifications.
D) structured diagrams.
Answer: A
48) In object-oriented development
A) the class is used as the basic unit of systems analysis and design.
B) an object is a collection of data that is acted on by external processes.
C) processing logic resides within objects.
D) a strict, step-by-step development process is essential.
Answer: C
49) In an object-oriented development framework for a university, how would the classes
Degree, Mathematics, and Physics be related?
A) Degree would be a sister class to Mathematics and Physics.
B) Degree is a superclass to Mathematics and Physics.
C) Mathematics and Physics would be ancestors to Degree.
D) Degree would be a subclass to Mathematics and Physics.
Answer: B

50) Object-oriented modeling is based on the concepts of


A) objects and relationships.
B) classes and objects.
C) class and inheritance.
D) objects and inheritance.
Answer: C

51) Object-oriented development could potentially reduce the time and cost of writing
software because
A) object-oriented programming requires less training.
B) iterative prototyping is not required.
C) objects are reusable.

D) a single user interface object can be used for the entire application.
Answer: C

52) CASE tools automate


A) documentation.
B) code generation.
C) creating data dictionaries.
D) all of the above.
Answer: D

53) The oldest method for building information systems is


A) component-based development.
B) prototyping.
C) object-oriented development.
D) the systems development lifecycle.
Answer: D
54) In the traditional systems development lifecycle, end users
A) are important and ongoing members of the team from the original analysis phase through
maintenance.
B) are important only in the testing phases.
C) have no input.
D) are limited to providing information requirements and reviewing the technical staff's work.
Answer: D

55) In which type of systems building are the development stages organized so that tasks in
one stage are completed before the tasks in the next stage begun?
A) traditional
B) prototyping
C) RAD
D) all of the above

Answer: A

56) As a technical project manager you have decided to propose implementing a prototyping
methodology for a small Web-based design project. What is the order of steps you will follow
in this project?
A) Develop the prototype; use the prototype; revise and enhance the prototype.
B) Identify user requirements, develop the prototype, use the prototype, revise and enhance
the prototype.
C) Define the requirements, develop solutions, select the best prototype, and implement the
prototype.
D) Define the requirements, develop the prototype, revise and enhance the prototype.
Answer: B
57) 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.
Answer: B
58) Which type of fourth-generation language tools are end-users most likely to work with?
A) report generators and query languages
B) report generators and application generators
C) PC software tools and query languages
D) PC software tools and report generators
Answer: C

59) Which type of fourth-generation language tool contains preprogrammed modules that
can be used to create entire applications?
A) PC software tools
B) report generators
C) application generators
D) application software packages

Answer: C

60) 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.
Answer: D

61) Management should control the development of end-user applications by


A) developing a formal development methodology.
B) requiring cost justification for end-user IS projects.
C) establishing standards for user-developed applications.
D) both B and C
E) both A and B
Answer: D

62) Fourth-generation tools cannot replace conventional development tools because they
A) cannot handle large numbers of transactions or extensive procedural logic.
B) are not designed to integrate with legacy systems.
C) do not incorporate methods for documentation.
D) do not incorporate methods for testing.
Answer: A

63) Categories of tools for BPM include all of the following except
A) tools to integrate existing systems to support business processes improvements.
B) tools to automate business processes.
C) tools to identify and document business processes.
D) tools to test the security of business processes.
Answer: D

64) What is the greatest barrier to successful business process change?


A) ineffective project management
B) usability of implemented solution
C) selecting the correct process to change
D) organizational change
Answer: D

65) 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.
Answer: A

66) Which type of systems development is characterized by significantly speeding up the


design phase and the generation of information requirements and involving users at an
intense level?
A) RAD
B) JAD
C) prototyping
D) end-user development
Answer: B

67) You are an IT project manager for an advertising firm. The firm wishes to create an
online tool that will be used to survey focus group reactions to products in development. The
most important consideration for the firm is being able to offer the tool as soon as possible
as a new corporate service. However, you know that many of the senior managers that are
business owners of this project have difficulty in understanding technical or software
development issues, and are likely to change their requirements during the course of
development. What development method would be most successful for this project?
A) RAD
B) JAD
C) end-user development

D) prototyping
Answer: D

68) 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) object-oriented development
B) component-based development
C) structured methodologies
D) RAD
Answer: B
69) 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.
Answer: B

70) ________ development focuses on rapid delivery of working software by breaking a


large project into a series of small sub-projects that are completed in short periods of time
using iteration and continuous feedback.
A) Agile
B) Rapid application
C) Joint application
D) Object-oriented
Answer: A
71) A(n) ________ is an organizational change that involves rethinking the nature of the
business and the nature of the organization itself.
Answer: paradigm shift

72) A software package evaluation process is often based on a series of questions sent to
vendors, called a(n) ________.

Answer: RFP, request for proposal

73) During the ________ stage of system development, system specifications that were
prepared during the design stage are translated into software code.
Answer: programming

74) A systems analysis includes a(n) ________ that is used to determine whether the
solution is achievable from a financial, technical, and organizational standpoint.
Answer: feasibility study

75) ________ contain a detailed statement of the information needs that a new system must
satisfy; identifies who needs what information, and when, where, and how the information is
needed.
Answer: Information requirements
76) A(n) ________ is the model or blueprint for an information system solution and consists
of all the specifications that will deliver the functions identified during systems analysis.
Answer: systems design

77) ________ is the process of changing from the old system to the new system.
Answer: Conversion
78) ________ describe the transformation occurring within the lowest level of the data flow
diagrams.
Answer: Process specifications
79) ________ are software tools that enable end users to create reports or develop software
applications with minimal or no technical assistance.
Answer: Fourth-generation languages
80) ________ design is a process used to accelerate the generation of information
requirements by having end-users and information system specialists work together in
intensive interactive design sessions.
Answer: Joint application

Chap 10

21) Neural network applications in medicine, science, and business address problems in all of
the following except:
A) pattern classification.
B) prediction.
C) control and optimization.
D) generalization.
Answer: D

22) Which of the following is a key problem in managing knowledge?


A) Classifying knowledge
B) Storing knowledge
C) Distributing knowledge
D) Locating knowledge
Answer: A
23) According to your reading of the text, Procter & Gamble's use of DSS illustrates the use
of information systems to implement which common business strategy?
A) Low-cost leadership
B) Product differentiation
C) Focus on market niche
D) Strengthen customer and supplier intimacy
Answer: A
24) Why does improving a small, routine decision have business value for a company?
A) A small decision may have a great economic impact on the company.
B) Even a routine decision may have a "ripple" effect through a corporation.
C) A single decision has business value when added with all the other decisions made in the
company.
D) Small, routine decisions typically do not have any business value for a company.
Answer: C
25) Where there is no well-understood or agreed-on procedure for making a decision, it is
said to be:
A) undocumented.
B) unstructured.
C) documented.
D) semistructured.
Answer: B
26) The type of decision that can made by following a definite procedure is called a(n)
________ decision.
A) structured
B) unstructured
C) semistructured
D) procedural
Answer: A
27) Which types of decisions are more prevalent at lower organizational levels?
A) Procedural decisions
B) Unstructured decisions
C) Structured decisions
D) Semistructured decisions
Answer: C
28) ________ decisions are most common at higher levels of management.
A) Semistructured
B) Unstructured

C) Structured
D) Undocumented
Answer: B
29) Operational management typically makes which type of decisions?
A) Semistructured
B) Documented
C) Structured
D) Procedural
Answer: C
30) Deciding whether to introduce a new product line is an example of a(n):
A) unstructured decision.
B) semistructured decision.
C) procedural decision.
D) nonprocedural decision.
Answer: A
31) Estimating the number of direct goods to reorder falls into which category of decisionmaking?
A) Structured
B) Documented
C) Unstructured
D) Procedural
Answer: A
32) Which phase of decision making finds or recognizes a problem?
A) Design
B) Intelligence
C) Choice
D) Implementation
Answer: B
33) Simon's four different stages in decision making are, in order from first to last:
A) identification, choice, design, and implementation.
B) identification, design, choice, and finalization.
C) intelligence, choice, design, and implementation.
D) intelligence, design, choice, and implementation.
Answer: D

34) Which dimension of quality means that a decision should reflect a rational process?
A) Comprehensiveness
B) Accuracy
C) Fairness
D) Coherence
Answer: D

35) Which dimension of quality means that a decision faithfully reflects the concerns and
interests of affected parties?
A) Due process

B) Justice
C) Fairness
D) Coherence
Answer: C
36) Which dimension of quality means that a decision is the result of a known process and
can be appealed to a higher authority?
A) Due process
B) Justice
C) Fairness
D) Accuracy
Answer: A
37) MIS typically produce:
A) New ways of looking at data that emphasize change, flexibility, and rapid response.
B) Fixed, regularly scheduled reports based on data extracted from the organization's TPS.
C) Solutions to semistructured problems appropriate for middle management decisionmaking.
D) Responses to ad hoc queries, and graphic representations of existing data.
Answer: B
38) Which systems help managers monitor and control the business by providing information
on the firm's performance?
A) MIS
B) DSS
C) ESS
D) GDSS
Answer: A
39) Which systems support decision-making by enabling users to extract useful information
that was previously buried in large quantities of data?
A) GSS
B) ESS
C) TPS
D) DSS
Answer: D
40) The components of a DSS are the:
A) database, data query language, and user interface.
B) data visualization tools, software, and graphics capabilities.
C) database, data mining tools, and analysis tools.
D) user interface, software system, and database.
Answer: D

41) A DSS database is a collection of:


A) historical data extracted from transaction-processing systems.
B) current or historical data from several applications or groups.
C) external data typically mined from the Internet and other third-party sources.
D) the corporations current transaction data.
Answer: B

42) Which type of model is used to help managers estimate future conditions and sales
figures resulting from these conditions?
A) Forecasting
B) Predictive
C) Statistical
D) Sensitivity analysis
Answer: A
43) Optimization models are often used to:
A) project future conditions and predict the effect of these conditions on sales.
B) determine the proper mix of products within a given market to maximize profits.
C) determine the price of a product given fluctuating sales and advertising budget.
D) establish the best relationship between price and sales and marketing budgets.
Answer: B
44) What type of model asks what-if questions repeatedly to determine the impact on
outcomes of changes in one or more factors?
A) Optimization
B) Sensitivity analysis
C) Goal seeking
D) Forecasting
Answer: B
45) Backward sensitivity analysis software is used for:
A) supply chain optimization.
B) historical what-if analysis.
C) goal seeking.
D) reverse forecasting.
Answer: C
46) 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) GSS
D) TPS
Answer: A
47) GDSS are designed to:
A) allow meeting attendees to share their thoughts in real-time with their peers.
B) manage knowledge using a global perspective.
C) enable collaboration among geographically dispersed participants.
D) implement structured methods for organizing and evaluation ideas.
Answer: D
48) Automobile companies would implement a(n) ________ to allow Web site visitors to
configure their desired car.
A) customer decision support (CDSS)

B) model-driven DSS
C) CAD system
D) GDSS
Answer: A

49) Which of the following are types of intelligent techniques?


A) Knowledge management systems
B) Expert systems
C) Computer-aided design
D) Sensitivity analysis
Answer: B
50) Which of the following would not be classified as a type of intelligent technique?
A) Genetic algorithms
B) Case based reasoning
C) Neural networks
D) Virtual reality
Answer: D

51) Expert systems:


A) solve problems too difficult for human experts.
B) are based on DO WHILE rules.
C) work in very limited domains.
D) share characteristics with mainframe computing.
Answer: C
52) Expert systems model human knowledge as a set of rules that collectively are
called the:
A) knowledge base.
B) knowledge database
C) inference engine
D) inference base
Answer: A
53) An inference engine is:
A) a data mining strategy used by intelligent agents.
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.
Answer: D

54) Virtually all expert systems deal with problems of:


A) associative data.
B) classification.
C) logic and control.
D) unstructured decision-making.
Answer: B
55) ________ are designed to have a generalize capability to learn.

A) Knowledge-based systems.
B) Neural networks.
C) Fuzzy logic systems.
D) Expert systems.
Answer: B
56) Intelligent techniques that parallel some aspects of the processing patterns of the
biological brain best describes:
A) neural networks.
B) genetic algorithms.
C) case-based reasoning.
D) fuzzy logic.
Answer: A

57) Genetic algorithms:


A) represent knowledge as groups of characteristics.
B) are software programs that work in the background to carry out specific, repetitive tasks.
C) develop solutions to particular problems using techniques such as fitness, crossover, and
mutation.
D) "learn" patterns from large quantities of data by sifting through data.
Answer: C
58) To automate routine tasks to help firms search for and filter information for use in
electronic commerce and supply chain management a firm would most likely use:
A) CAD systems.
B) genetic algorithms.
C) fuzzy logic systems.
D) intelligent agents.
Answer: D

59) Expertise and experience of organizational members that has not been formally
documented best describes:
A) wisdom.
B) information.
C) data.
D) tacit knowledge.
Answer: D
60) What are the two major types of knowledge management systems?
A) Management information systems and decision support systems
B) Enterprise-wide knowledge management systems and knowledge work systems
C) Enterprise systems and knowledge management systems
D) Expert systems and knowledge work systems
Answer: B
61) ________ systems help organizations manage both structured and semistructured
knowledge.
A) Digital asset management
B) Knowledge network

C) Enterprise content management


D) Knowledge work
Answer: C
62) In order to search for and retrieve knowledge objects in an enterprise content
management system, the objects themselves must be:
A) tagged with a classification.
B) linked to their original sources.
C) organized into relevant directories.
D) referenced by appropriate indices.
Answer: A
63) Tools for the management, delivery, tracking, and assessment of various types of
employee learning best describes:
A) knowledge work systems.
B) employee relationship systems.
C) employee management systems.
D) learning management systems.
Answer: D
64) ________ help media firms store and manage unstructured digital data such as
photographs, images, videos, and audio files.
A) Digital asset management systems
B) Knowledge networks
C) LMS
D) CAD
Answer: A
65) ________ are an essential component of a knowledge work system.
A) Computer-aided design tools
B) Three-dimensional modeling tools
C) Tagging and classification tools
D) Links to external knowledge bases
Answer: D
66) Which of the following would not be classified as a knowledge work system?
A) Computer-aided design
B) 3D visualization system
C) Investment workstations
D) Digital asset management system
Answer: D
67) CAD workstations:
A) provide design engineers with precise, three-dimensional representations of their models.
B) provide an important source of expertise for organizations.
C) allow groups to work together on documents.
D) are high-end PCs used in the financial sector to analyze trading situations instantaneously
and facilitate portfolio management.
Answer: A

68) Virtual reality applications for the Web use a standard called:
A) CAD
B) VRML
C) VML
D) TCP/IP
Answer: B
69) Virtual reality systems:
A) provide design engineers with precise, three-dimensional representations of their models.
B) provide an important source of expertise for organizations.
C) allow groups to work together on documents.
D) provide simulations of walking through or manipulating a three-dimensional model or
programmed real-world environment.
Answer: D
70) Based on your reading of the chapter case discussing the HSBC, which type of
information system was used to establish the policies for lending subprime mortgages?
A) Data-driven DSS
B) Model-driven DSS
C) Model-driven ESS
D) GIS
Answer: B
71) A(n) ________ is an abstract representation illustrating the components or relationships
of a phenomenon.
Answer: model
72) ________ helps users see patterns and relationships in large amounts of data by
presenting the data in graphical form.
Answer: Data visualization
73) A(n) ________ is a table that displays two or more dimensions of data in a convenient
format.
Answer: pivot table
74) ________ use easy-to-understand displays to provide management with a comprehensive
view of firm performance on a single screen.
Answer: Digital dashboards
75) ESS have are able to ________, or move from summary data to lower and lower levels of
detail.
Answer: drill down
76) ________ technology consists of computer-based systems that attempt to emulate human
behavior and thought patterns.
Answer: Artificial intelligence/AI
77) Decision making is enhanced by a diverse group of ________ techniques, such as data
mining, expert systems, neural networks, fuzzy logic, genetic algorithms, and intelligent
agents.
Answer: intelligent

78) In ________ descriptions of past experiences of human specialists, represented as cases,


are stored in a database for later retrieval when the user encounters a new case with similar
parameters.
Answer: case-based reasoning/CBR,
79) ________ is a rule-based technology that can represent the imprecise categories by
creating rules that use approximate or subjective values.
Answer: Fuzzy logic
80) ________ systems are also known as expertise location and management systems.
Answer: Knowledge network
Chapter 10

d
Neural network applications in medicine, science, and
business address problems in all of the following except:
A) pattern classification.
B) prediction.
C) control and optimization.
D) generalization
a
Which of the following is a key problem in managing
knowledge?
A) Classifying knowledge
B) Storing knowledge
C) Distributing knowledge
D) Locating knowledge
a
According to your reading of the text, Procter & Gamble's
use of intelligent agent technology in its supply chain
illustrates the use of information systems to implement
which of the four generic business strategies
A) Low-cost leadership
B) Product differentiation
C) Focus on market niche
D) Strengthen customer and supplier intimacy
c
Why does improving a small, routine decision have
business value for a company?
A) A small decision may have a great economic impact on

the company.
B) Even a routine decision may have a "ripple" effect
through a corporation.
C) A small decision has business value when added with
all the other small decisions made in the company.
D) Small, routine decisions typically do not have any
business value for a company
b
Where there is no well-understood or agreed-on
procedure for making a decision, it is said to be:
A) undocumented.
B) unstructured.
C) documented.
D) semistructured
a
The type of decision that can be made by following a
definite procedure is called a(n) ________ decision.
A) structured
B) unstructured
C) semistructured
D) procedural
c
Which types of decisions are more prevalent at lower
organizational levels?
A) Procedural decisions
B) Unstructured decisions
C) Structured decisions
D) Semistructured decisions
b
________ decisions are most common at higher levels of
management.
A) Semistructured
B) Unstructured
C) Structured
D) Undocumented

c
Operational management typically makes which type of
decisions?
A) Semistructured
B) Documented
C) Structured
D) Procedural
a
Deciding whether to introduce a new product line is an
example of a(n):
A) unstructured decision.
B) semistructured decision.
C) procedural decision.
D) nonprocedural decision
a
Estimating the number of direct goods to reorder falls into
which category of decision making?
A) Structured
B) Documented
C) Unstructured
D) Procedural
b
Which phase of decision making finds or recognizes a
problem?
A) Design
B) Intelligence
C) Choice
D) Implementation
d
Simon's four different stages in decision making are, in
order from first to last:
A) identification, choice, design, and implementation.
B) identification, design, choice, and finalization.
C) intelligence, choice, design, and implementation.
D) intelligence, design, choice, and implementation

d
Which dimension of quality means that a decision should
reflect a rational process?
A) Comprehensiveness
B) Accuracy
C) Fairness
D) Coherence
c
Which dimension of quality means that a decision
faithfully reflects the concerns and interests of affected
parties?
A) Due process
B) Justice
C) Fairness
D) Coherence
a
You are answering phones for a local utilities provider and
are speaking with an extremely angry customer. Because
your company manual advises employees to transfer
hostile calls to a superior, you do this. What quality
dimension of decisions does your action reflect?
A) Due process
B) Justice
C) Fairness
D) Accuracy
b
Which of the following is not an element of the business
intelligence environment?
A) User interface
B) Executive users
C) Platform
D) Business analytics toolset
a
All of the following are analytic functionalities that BI
systems deliver except:
A) user interface.

B) ad hoc queries.
C) dashboards.
D) production reports
d
Which of the following would be a typical production
report for an organization's financial division?
A) Variability of sales by region and time
B) Projected income
C) Supplier information
D) Cash flow
d
In a parameterized report, users can:
A) drill down to more finely grained information.
B) create their own reports based on custom queries.
C) view overall firm performance data.
D) view data according to different dimensions of the data
b
Which of the following BI functionalities would you use to
assess how customers would respond to a price change in
your product?
A) Paramaterized reports
B) Predictive analytics
C) Ad hoc queries
D) Production reports
a
All of the following are dimensions of firm performance
that are measured in the balanced scorecard method
except:
A) resources.
B) business process.
C) customer.
D) learning and growth
b
Why is the balanced scorecard method said to be
"balanced"?

A) It uses measurable dimensions for assessing


performance.
B) It measures performance of more than just financial
systems.
C) It assesses both the internally focused and externally
focused business processes.
D) It measures performance along all major divisions of a
firm, from production and manufacturing to human
resources
b
What type of model asks what-if questions repeatedly to
determine the impact on outcomes of changes in one or
more factors?
A) Mathematical
B) Sensitivity analysis
C) Goal seeking
D) Forecasting
c
Backward sensitivity analysis software is used for:
A) supply chain optimization.
B) historical what-if analysis.
C) goal seeking.
D) reverse forecasting
a
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) GSS
D) TPS
d
GDSS are designed to:
A) allow meeting attendees to share their thoughts in real
time with their peers.
B) manage knowledge using a global perspective.

C) enable collaboration among geographically dispersed


participants.
D) implement structured methods for organizing and
evaluation ideas.
b
A KPI is:
A) an industry standard for measuring performance along
a given dimension.
B) a measure proposed by senior management.
C) an alternative to the balanced scorecard method.
D) an analytic technique for measuring financial
performance
b
You are the CEO of a national shoe store and want to add
three new stores. Which of the following tools will best
help you find the most potentially profitable new
locations?
A) Pivot tables
B) Intelligent agent
C) CBR
D) Location analytics
d
You are developing a customer recommendation system
for a department store's e-commerce site. Which of the
following tools will provide the most accurate
recommendations?
A) Genetic algorithms
B) Fuzzy logic
C) Location analytics
D) Big data analytics
c
Expert systems:
A) solve problems too difficult for human experts.
B) are based on DO WHILE rules.
C) work in very limited domains.
D) share characteristics with mainframe computing

a
Expert systems model human knowledge as a set of rules
that collectively are called the:
A) knowledge base.
B) knowledge database.
C) inference engine.
D) inference base
d
An inference engine is:
A) a data mining strategy used by intelligent agents.
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.
b
Virtually all successful expert systems deal with problems
of:
A) associative data.
B) classification.
C) logic and control.
D) unstructured decision-making
b
________ are designed to have a generalized capability to
learn.
A) Knowledge-based systems
B) Neural networks
C) Fuzzy logic systems
D) Expert systems
a
________ are intelligent techniques that parallel some
aspects of the processing patterns of the biological brain.
A) Neural networks
B) Genetic algorithms

C) CBR systems
D) Fuzzy logic systems
c
Genetic algorithms:
A) represent knowledge as groups of characteristics.
B) are software programs that work in the background to
carry out specific, repetitive tasks.
C) develop solutions to particular problems using
techniques such as mutation, crossover, and selection.
D) "learn" patterns from large quantities of data by sifting
through data
d
To automate routine tasks to help firms search for and
filter information for use in electronic commerce and
supply chain management, a firm would most likely use:
A) CAD systems.
B) genetic algorithms.
C) fuzzy logic systems.
D) intelligent agents.
d
Expertise and experience of organizational members that
has not been formally documented best describes:
A) wisdom.
B) information.
C) data.
D) tacit knowledge
b
What are the two major types of knowledge management
systems?
A) Management information systems and decision support
systems
B) Enterprise-wide knowledge management systems and
knowledge work systems
C) Enterprise systems and knowledge management
systems
D) Expert systems and knowledge work systems

c
________ systems help organizations manage both
structured and semistructured knowledge.
A) Digital asset management
B) Knowledge network
C) Enterprise content management
D) Knowledge work
a
In order to search for and retrieve knowledge objects in an
enterprise content management system, the objects
themselves must be:
A) tagged with a classification.
B) linked to their original sources.
C) organized into relevant directories.
D) referenced by appropriate indices
d
Tools for the management, delivery, tracking, and
assessment of various types of employee learning best
describes:
A) knowledge work systems.
B) employee relationship systems.
C) employee management systems.
D) learning management systems.
a
________ help media firms store and manage unstructured
digital data such as photographs, images, videos, and
audio files.
A) Digital asset management systems
B) Knowledge networks
C) LMS
D) CAD
d
________ are an essential component of a knowledge work
system.
A) Computer-aided design tools

B) Three-dimensional modeling tools


C) Tagging and classification tools
D) Links to external knowledge bases
d
Which of the following would not be classified as a
knowledge work system?
A) Computer-aided design
B) 3D visualization system
C) Investment workstations
D) Digital asset management system
a
CAD workstations:
A) provide design engineers with precise, threedimensional representations of their models.
B) provide an important source of expertise for
organizations.
C) allow groups to work together on documents.
D) are high-end PCs used in the financial sector to analyze
trading situations instantaneously and facilitate portfolio
management
b
Virtual reality applications for the Web use a standard
called:
A) CAD.
B) VRML.
C) VML.
D) TCP/IP.
d
Virtual reality systems:
A) provide design engineers with precise, threedimensional representations of their models.
B) provide an important source of expertise for
organizations.
C) allow groups to work together on documents.
D) provide simulations of walking through or manipulating

a three-dimensional model or programmed real-world


environment
a
________ is a management methodology that translates a
firm's goals into operational targets.
A) BPM
B) KPI
C) Balanced scorecard
D) OLAP
true
t/f Folksonomies are user-created taxonomies
d
________ help users gain information from large amounts
of geographically linked data.
A) Data visualization tools
B) GIS
C) GDSS
D) Location analytics tools
a
A(n) ________ table is a spreadsheet feature that displays
two or more dimensions of data in a convenient format.
A) pivot
B) drill-down
C) ad hoc
D) multi-tier
true
t/f Dashboards and scorecards are visual interfaces used
to make firm information easier to review quickly
b
A(n) ________ capability allows users to view more detailed
views of data.
A) ad hoc
B) drill-down

C) query and reporting


D) metrics
d
________ intelligence technology consists of computerbased systems that attempt to emulate human behavior
and thought patterns.
A) Neural
B) Genetic
C) Fuzzy
D) Artificial
a
Decision making is enhanced by a diverse group of
________, such as data mining and fuzzy logic.
A) intelligent techniques
B) expert systems
C) DSS
D) intelligent models
c
In ________, descriptions of past experiences of human
specialists, represented as cases, are stored in a database
for later retrieval when the user encounters a new case
with similar parameters.
A) expert systems
B) DSS
C) CBR
D) intelligence networks
b
Which of the following types of business intelligence user
is considered a power user?
A) IT developers
B) Business analysts
C) Operational employees
D) Senior managers

Chapter 10

21) What type of knowledge management system did


Procter & Gamble implement in order to increase the
efficiency of their research and development
organization?
A. content management system
B. digital asset management system
C. learning management system
D. knowledge network system
A
22) The percentage of gross domestic product of the
United States that is produced by the knowledge and
information sectors is estimated to be about ________
percent.
A. 20
B. 40
C. 60
D. 80
C
23) Which of the following statements best describes the
relationship between collaboration and knowledge
management?
A. Without knowledge, collaboration is difficult.
B. Knowledge doesn't exist without collaboration.
C. Knowledge is useful only when shared with others.
D. As knowledge increases, so does collaboration.
C
24) The flow of events or transactions captured by an
organization's system describes
A. information.
B. data.
C. wisdom.
D. knowledge.
B

25) Expertise and experience of organizational members


that has not been formally documented best describes
A. wisdom.
B. information.
C. data.
D. tacit knowledge.
D
26) Changing organizational behavior by sensing and
responding to new experience and knowledge is called
A. change management.
B. knowledge networking.
C. the knowledge value chain.
D. organizational learning.
D
27) The set of business processes, culture, and behavior
required to obtain value from investments in information
systems is one type of
A. knowledge culture.
B. knowledge discovery.
C. organizational and management capital.
D. organizational routine.
C
28) Which of the following systems digitizes, indexes,
and tags documents according to a coherent framework?
A. wikis
B. CAD
C. document management
D. LMS
C
29) Which of the following statements is NOT an
accurate description of the importance of knowledge to
a firm?
A. Knowledge-based core competencies are key
organizational assets.
B. Knowledge should be seen as similar to any other key
asset, such as a financial asset or a production facility.

C. Knowledge enables firms to become more efficient in


their use of scarce resources.
D. Knowledge is not subject to the law of diminishing
returns as are physical assets.
B
30) What is meant by the statement "knowledge is
sticky"?
A. Knowledge is hard to move.
B. Knowledge is universally applicable.
C. Knowledge works only in certain situations.
D. Knowledge is intangible.
A
31) Which of the following is NOT one of the main four
dimensions of knowledge described in the chapter?
A. Knowledge is a firm asset.
B. Knowledge has different forms.
C. Knowledge has no locations.
D. Knowledge is situational.
C
32) In order, which are the value-adding steps in the
knowledge business value chain?
A. acquire, store, disseminate, apply, feedback
B. data and information acquisition, acquire, store,
disseminate, apply
C. acquire, disseminate, apply, feedback, management
and organizational activities
D. data and information acquisition, store, disseminate,
feedback, apply
B
33) Informal social networks of professionals and
employees within and outside the firm who have similar
work-related activities and interests are called
communities of
A. practice.
B. professionals.
C. interest.

D. knowledge.
A
34) Which of the following are the three major types of
knowledge management systems?
A. management information systems, decision support
systems, and transaction processing systems
B. enterprise systems, customer support systems, and
supply chain management systems
C. database management systems, expert systems, and
knowledge work systems
D. enterprise-wide knowledge management systems,
knowledge work systems, and intelligent techniques
D
35) Specialized systems built for engineers, scientists,
and other knowledge workers charged with discovering
and creating new knowledge for a company are called
A. KWS.
B. LMS.
C. wikis.
D. CAD systems.
A
36) Fuzzy logic is a type of
A. data mining.
B. neural network.
C. intelligent technique.
D. business intelligence.
C
37) 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
B

38) Which of the following would NOT considered


semistructured knowledge?
A. request for proposals
B. voice-mail
C. videos
D. e-mail
A
39) You are advising a multimedia company on the best
type of knowledge management system to help them
archive digital video and sound clips. Which of the
following will suit their needs?
A. enterprise content management system
B. digital asset management system
C. knowledge network system
D. VRML system
B
40) Once a knowledge taxonomy is developed,
documents are all ________ with the proper classification.
A. tagged
B. linked
C. tupled
D. referenced
A
41) Which of the following is NOT a Web 2.0 tool firms
are using to foster collaboration?
A. blogs
B. intranets
C. wikis
D. social bookmarking
B
42) Which of the following statements about the use of
wikis by firms is NOT true?
A. They are inexpensive and easy to implement.
B. Users are able to modify wiki content contributed by
others.

C. They are most appropriate for information that must


be revised but does not need to be available 24/7.
D. They can be used as a central repository for all types
of corporate data such as spreadsheets and e-mail.
C
43) Which of the following is a collaboration tool used to
support knowledge management systems?
A. blogs
B. wikis
C. social bookmarking
D. all of the above
D
44) Tools for the management, delivery, tracking, and
assessment of various types of employee learning best
describes a(n)
A. investment workstation.
B. organizational learning system.
C. employee enrichment system.
D. learning management system.
D
45) Most knowledge workers require specialized
knowledge work systems, but they also rely on
A. office systems.
B. schools and universities.
C. imaging systems.
D. data transferring systems.
A
46) A ________ is very important to a knowledge worker's
system.
A. careful filing system
B. financial analysis system
C. CAD capability
D. user-friendly interface
D

47) ________ often are designed and optimized for the


specific tasks to be performed.
A. Graphics programs
B. Knowledge workstations
C. Virtual simulators
D. CAD stations
B
48) CAD 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 high-end PCs used in the financial sector to
analyze trading situations instantaneously and facilitate
portfolio management.
A
49) Which of the following would NOT be classified as a
knowledge work system?
A. computer-aided design system
B. 3D visualization system
C. investment workstations
D. expert system
D
50) Virtual reality systems
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. provide architects, engineers, and medical workers
with precise, photorealistic simulations of objects.
D
51) 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.
D
52) Which of the following systems is NOT used to
capture tacit knowledge?
A. expert system
B. case-based reasoning
C. fuzzy logic
D. neural network
D
53) Which of the following is a type of intelligent
technique?
A. knowledge networks
B. case based reasoning
C. computer-aided design
D. VRML
B
54) Which of the following techniques is used for
knowledge discovery?
A. expert system
B. transaction processing systems
C. case-based reasoning
D. data mining
D
55) Technology that consists of computer-based
systems that attempt to emulate human behavior is
called
A. fuzzy logic.
B. neural networks.

C. AI technology.
D. genetic algorithms.
C
56) 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.
D
57) Forward chaining is
A. a strategy searching for the rule base in an expert
system that begins with information entered by the user.
B. the programming environment of an expert system.
C. a method of organizing expert system knowledge into
chunks.
D. a strategy for searching the rule base in an expert
system that begins with a hypothesis.
A
58) Backward chaining is
A. a strategy for searching the rule base in an expert
system that begins with information entered by the user.
B. the programming environment of an expert system.
C. a method of organizing expert system knowledge into
chunks.
D. a strategy for searching the rule base in an expert
system that begins with a hypothesis.
D
59) Expert systems
A. solve problems too difficult for human experts.
B. are based on DO WHILE rules.
C. work in very limited domains.
D. share characteristics with mainframe computing.

C
60) It is unlikely you could represent the knowledge in
the Encyclopedia Britannica with an expert system
because:
A. there is no one expert who understands all the
material contained within the encyclopedia.
B. the knowledge changes radically over a short time.
C. not all the knowledge in the encyclopedia can be
represented in the form of IF-THEN rules.
D. the knowledge is too general.
C
61) Virtually all expert systems deal with problems of
A. policy development.
B. classification.
C. logic and control.
D. high complexity.
B
62) Expert systems are expensive and time-consuming
to maintain because
A. their rule base is so complex.
B. they rely on equipment that becomes outdated.
C. their rules must be reprogrammed every time there is
a change in the environment, which in turn may change
the applicable rules.
D. only the person who created the system knows
exactly how it works, and may not be available when
changes are needed.
C
63) In this technique, descriptions of past experiences of
human specialists are stored in a database for later
retrieval when the user encounters a situation with
similar characteristics.
A. CBR
B. fuzzy logic
C. data mining
D. LMS

A
64) You are an automotive engineer working on an
application that will automatically parallel park a car.
The intelligent technique you may find most useful is:
A. case-based reasoning.
B. artificial intelligence.
C. fuzzy logic.
D. expert system.
C
65) Hardware and software that attempts to emulate the
processing patterns of the biological brain best
describes
A. a neural network.
B. an expert system.
C. case-based reasoning.
D. fuzzy logic.
A
66) Genetic algorithms
A. develop solutions to particular problems using
fitness, crossover, and mutation.
B. represent knowledge as groups of characteristics.
C. do not work for most problems.
D. are based on logic.
A
67) Which of the following describes a difference
between neural networks and genetic algorithms?
A. Genetic algorithms are designed to process large
amounts of information.
B. Genetic algorithms are a type of knowledge discovery,
while neural networks are an intelligent technique.
C. Neural networks are programmed to "learn."
D. All of the above
C
68) Software programs that work in the background
without direct human intervention to carry out specific,

repetitive, and predictable tasks for individual users,


business processes, or software applications, are called
A. intelligent agents.
B. intelligent techniques.
C. business intelligence.
D. AI hybrid systems.
A
69) What type of intelligent technique helped Procter &
Gamble determine the most efficient methods for their
trucks to deliver goods?
A. fuzzy logic
B. intelligent agents
C. genetic algorithms
D. none of the above
B
70) To automate routine tasks to help firms search for
and filter information for use in electronic commerce
and supply chain management a firm would most likely
use
A. CAD systems.
B. virtual reality systems.
C. fuzzy logic systems.
D. intelligent agents.
D
Chapter 10
21) Neural network applications in medicine, science, and
business address problems in all of the following except:
Generalization.
22) Which of the following is a key problem in managing
knowledge?
Classifying knowledge
23) According to your reading of the text, Procter & Gamble's
use of intelligent agent technology in its supply chain
illustrates the use of information systems to implement which
of the four generic business strategies?
Low-cost leadership

24) Why does improving a small, routine decision have


business value for a company?
A small decision has business value when added with all the
other small decisions made in the company.
25) Where there is no well-understood or agreed-on procedure
for making a decision, it is said to be:
Unstructured.
26) The type of decision that can be made by following a
definite procedure is called a(n) ________ decision.
Structured
27) Which types of decisions are more prevalent at lower
organizational levels?
Structured decisions
28) ________ decisions are most common at higher levels of
management.
Unstructured
29) Operational management typically makes which type of
decisions?
Structured
30) Deciding whether to introduce a new product line is an
example of a(n):
Unstructured decision.
31) Estimating the number of direct goods to reorder falls into
which category of decision making?
Structured
32) Which phase of decision making finds or recognizes a
problem?
Intelligence
33) Simon's four different stages in decision making are, in
order from first to last:
Intelligence, design, choice, and implementation.
34) Which dimension of quality means that a decision should
reflect a rational process?
Coherence
35) Which dimension of quality means that a decision faithfully
reflects the concerns and interests of affected parties?
Fairness
36) You are answering phones for a local utilities provider and
are speaking with an extremely angry customer. Because your
company manual advises employees to transfer hostile calls to
a superior, you do this. What quality dimension of decisions
does your action reflect?

Due process
37) Which of the following is not an element of the business
intelligence environment?
Executive users
38) All of the following are analytic functionalities that BI
systems deliver except:
User interface.
39) Which of the following would be a typical production report
for an organization's financial division?
Cash flow
40) In a parameterized report, users can:
View data according to different dimensions of the data.
41) Which of the following BI functionalities would you use to
assess how customers would respond to a price change in
your product?
Predictive analytics
42) All of the following are dimensions of firm performance that
are measured in the balanced scorecard method except:
Resources.
43) Why is the balanced scorecard method said to be
"balanced"?
It measures performance of more than just financial systems.
44) What type of model asks what-if questions repeatedly to
determine the impact on outcomes of changes in one or more
factors?
Sensitivity analysis
45) Backward sensitivity analysis software is used for:
Goal seeking.
46) 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?
GIS
47) GDSS are designed to:
Implement structured methods for organizing and evaluation
ideas.
48) A KPI is:
A measure proposed by senior management.
49) You are the CEO of a national shoe store and want to add
three new stores. Which of the following tools will best help
you find the most potentially profitable new locations?
Intelligent agent

50) You are developing a customer recommendation system


for a department store's e-commerce site. Which of the
following tools will provide the most accurate
recommendations?
Big data analytics
51) Expert systems:
Work in very limited domains.
52) Expert systems model human knowledge as a set of rules
that collectively are called the:
Knowledge base.
53) An inference engine is:
A strategy used to search through the rule base in an expert
system.
54) Virtually all successful expert systems deal with problems
of:
Classification.
55) ________ are designed to have a generalized capability to
learn.
Neural networks
56) ________ are intelligent techniques that parallel some
aspects of the processing patterns of the biological brain.
Neural networks
57) Genetic algorithms:
Develop solutions to particular problems using techniques
such as mutation, crossover, and selection.
58) To automate routine tasks to help firms search for and
filter information for use in electronic commerce and supply
chain management, a firm would most likely use:
Intelligent agents.
59) Expertise and experience of organizational members that
has not been formally documented best describes:
Tacit knowledge.
60) What are the two major types of knowledge management
systems?
Enterprise-wide knowledge management systems and
knowledge work systems
61) ________ systems help organizations manage both
structured and semistructured knowledge.
Enterprise content management
62) In order to search for and retrieve knowledge objects in an
enterprise content management system, the objects
themselves must be:

Tagged with a classification.


63) Tools for the management, delivery, tracking, and
assessment of various types of employee learning best
describes:
Learning management systems.
64) ________ help media firms store and manage
unstructured digital data such as photographs, images, videos,
and audio files.
Digital asset management systems
65) ________ are an essential component of a knowledge
work system.
Links to external knowledge bases
66) Which of the following would not be classified as a
knowledge work system?
Digital asset management system
67) Virtual reality workstations:
Provide design engineers with precise, three-dimensional
representations of their models.
68) Virtual reality applications for the Web use a standard
called:
VRML.
69) Virtual reality systems:
Provide simulations of walking through or manipulating a
three-dimensional model or programmed real-world
environment.
70) ________ is a management methodology that translates a
firm's goals into operational targets.
BPM
72) ________ help users gain information from large amounts
of geographically linked data.
Location analytics tools
73) A(n) ________ table is a spreadsheet feature that displays
two or more dimensions of data in a convenient format.
Pivot
75) A(n) ________ capability allows users to view more
detailed views of data.
Drill-down
76) ________ intelligence technology consists of computerbased systems that attempt to emulate human behavior and
thought patterns.
Artificial

77) Decision making is enhanced by a diverse group of


________, such as data mining and fuzzy logic.
Intelligent techniques
78) In ________, descriptions of past experiences of human
specialists, represented as cases, are stored in a database for
later retrieval when the user encounters a new case with
similar parameters.
CBR
79) Which of the following types of business intelligence user
is considered a power user?
Business analysts

Chapter 9

Since the dot-com bubble burst of 2001, e-commerce


revenues:
- have essentially stagnated.
- show signs of stabilizing.
- have returned to solid growth.
- have returned to exponential growth.
have returned to solid growth.
Varying a product's price according to the supply
situation of the seller is called ________ pricing.
- menu
- flexible
- dynamic
- asymmetric
dynamic
The act of engaging consumers in a dialog that
dynamically adjusts the experience to the individual
describes which dimension of e-commerce technology?
- ubiquity
- personalization/customization
- richness
- interactivity
interactivity
Tools that compare user behavior and interests to make
purchasing recommendations to users are called

________ tools.
- clickstream tracking
- customer tracking
- collaborative filtering
- filtering
collaborative filtering

In the United States, m-commerce


- has become widely adopted.
- is still in its infancy.
- represents a major fraction of total e-commerce
transactions.
- is growing, due to the emergence of 2G networks
is still in its infancy.
Reducing the business process layers in a distribution
channel is called
- disintermediation.
- BPR.
- market segmentation.
- network effects.
disintermediation.
The effort required to locate a suitable product is called
- price discrimination.
- search costs.
- menu costs.
- transparency costs.
search costs

Which of the following is NOT one of the unique features


of e-commerce technology?
- information density
- transparency
- richness
- social technology
transparency

The integration of video, audio, and text marketing


messages into a single marketing message and
consumer experience describes which dimension of ecommerce technology?
- ubiquity
- personalization/customization
- richness
- interactivity
richness

Which Internet business model is JR.com most closely


aligned with?
- virtual storefront
- exchange
- transaction broker
- online marketplace
virtual storefront
EDI is
- the use of Internet technologies for electronic data
transactions.
- the exchange between two organizations of standard
transactions through a network.
- electronic data invoicing.
- electronic delivery infrastructure.
the exchange between two organizations of standard
transactions through a network.

Online marketplaces
- save users money and time by processing online sales
dealings.
- provide a digital environment where buyers and sellers
can establish prices for products.
- create revenue by providing digital content over the

Web.
- sell physical products directly to consumers or
individual businesses.
provide a digital environment where buyers and sellers
can establish prices for products.

A marketplace extended beyond traditional boundaries


and removed from a temporal and geographic location is
called a(n)
- exchange.
- marketspace.
- online marketplace.
- e-hub.
marketspace.
Which of the following Internet business models does
Amazon.com use?
- information broker
- transaction broker
- online service provider
- virtual storefront
virtual storefront
Which Internet business model is Photobucket most
closely aligned with?
- service provider
- content provider
- portal
- social network
service provider
What strategy was implemented by Stonyfield Farm in its
use of blogs?
- low-cost leadership
- product differentiation
- focus on market niche
- strengthen customer and supplier intimacy
strengthen customer and supplier intimacy

Compared to digital markets, traditional markets have


- lower search costs.
- stronger network effects.
- higher delayed gratification effects.
- higher transaction costs.
higher transaction costs.
Transaction brokers
- generate revenue from advertising or from directing
buyers to sellers.
- save users money and time by processing online sales
dealings.
- provide a digital environment where buyers and sellers
can establish prices for products.
- sell physical products directly to consumers or
individual businesses.
save users money and time by processing online sales
dealings.
Businesses retailing products and services directly via
the Internet to individual consumers best describes
- B2B electronic commerce.
- C2C electronic commerce.
- M-commerce.
- B2C electronic commerce.
B2C electronic commerce.
Compared to digital markets, traditional markets have
- lower search costs.
- stronger network effects.
- higher delayed gratification effects.
- higher transaction costs.
higher transaction costs.
Online marketplaces
- save users money and time by processing online sales
dealings.
- provide a digital environment where buyers and sellers
can establish prices for products.

- create revenue by providing digital content over the


Web.
- sell physical products directly to consumers or
individual businesses.
provide a digital environment where buyers and sellers
can establish prices for products.
Tools that record customer activities at Web sites and
store them in a log for further analysis are called
________ tools.
- clickstream tracking
- customer tracking
- collaborative filtering
- filtering
clickstream tracking
What strategy was implemented by Stonyfield Farm in its
use of blogs?
- low-cost leadership
- product differentiation
- focus on market niche
- strengthen customer and supplier intimacy
strengthen customer and supplier intimacy
Net marketplaces
- focus on continuous business process coordination
between companies for supply chain management.
- are industry owned or operate as independent
intermediaries between buyers and sellers.
- are geared towards short-term spot purchasing.
- are more relationship oriented than private industrial
networks.
are industry owned or operate as independent
intermediaries between buyers and sellers.
The integration of video, audio, and text marketing
messages into a single marketing message and
consumer experience describes which dimension of ecommerce technology?
- ubiquity

- personalization/customization
- richness
- interactivity
richness
EDI is
- the use of Internet technologies for electronic data
transactions.
- the exchange between two organizations of standard
transactions through a network.
- electronic data invoicing.
- electronic delivery infrastructure.
the exchange between two organizations of standard
transactions through a network.
Which of the following is an ad that opens automatically
and does not disappear until the user clicks on it?
- pop-up ad
- controlled ad
- portal ad
- banner ad
pop-up ad
Which of the following is NOT one of the categories of
services that are popular for m-commerce?
- location-based services
- financial services
- games and entertainment
- e-books
e-books
Which of the following is NOT a recent development in
e-commerce?
- growth of wireless Internet connections
- online, interactive models for newspapers and other
traditional media
- use of blogs as a commercial medium
- transformation of the music recording industry
transformation of the music recording industry

Compared to traditional goods, digital goods have


- greater pricing flexibility.
- lower marketing costs.
- higher production costs.
- higher inventory costs.
greater pricing flexibility.
Pure-play businesses
- are an example of business-to-business electronic
commerce.
- do not sell a physical product.
- are extensions of traditional bricks-and-mortar
businesses.
- did not have an earlier existing bricks-and-mortar
business before they went to the Internet.
did not have an earlier existing bricks-and-mortar
business before they went to the Internet.
Which of the following businesses utilizes the content
provider Internet business model?
- Amazon.com
- eBay.com
- CNN.com
- Motocross.com
CNN.com
Digital goods are goods that are
- produced digitally.
- sold over digital networks.
- delivered digitally.
- used with digital equipment.
delivered digitally.
Since the dot-com bubble burst of 2001, e-commerce
revenues:
- have essentially stagnated.
- show signs of stabilizing.
- have returned to solid growth.
- have returned to exponential growth.
have returned to solid growth.

Which of the following Internet business models does


Amazon.com use?
- information broker
- transaction broker
- online service provider
- virtual storefront
virtual storefront
Varying a product's price according to the supply
situation of the seller is called ________ pricing.
- menu
- flexible
- dynamic
- asymmetric
dynamic
The organizational department responsible for handling
customer service issues is the
- service center.
- customer support department.
- call center.
- sales department.
call center.
Consumers selling goods and services electronically to
other consumers best describes:
- disintermediation.
- C2C electronic commerce.
- M-commerce.
- B2C electronic commerce.
C2C electronic commerce.
Reducing the business process layers in a distribution
channel is called
- disintermediation.
- BPR.
- market segmentation.
- network effects.
disintermediation.

Why are companies interested in setting up MySpace


profiles for their products?
- to bypass broadcast regulations for advertising to
children
- to gather data on MySpace users linking to them
- to take advantage of free advertising
- to create personal relationships with consumers
to bypass broadcast regulations for advertising to children
Which of the following statements about m-commerce
payments is NOT true?
- Use of mobile handsets as payment devices is already
well established in Europe, Japan, and South Korea.
- The cell phone in the United States is not connected to
a wide network of financial institutions.
- Japanese cell phones act like mobile wallets,
containing a variety of payment mechanisms.
- The three kinds of mobile payments systems used in
Japan are mobile credit cards, mobile debit cards, and
digital wallets.
The three kinds of mobile payments systems used in
Japan are mobile credit cards, mobile debit cards, and
digital wallets.
Information ________ exists when one party in a
transaction has more information that is important for
the transaction than the other party.
- transparency
- asymmetry
- complexity
- imbalance
asymmetry
eBay is an example of
- a click-and-mortar business.
- C2C electronic commerce.
- B2C electronic commerce.
- an online exchange.
C2C electronic commerce.

21) Through what channel did e-commerce first evolve?


A) online advertising sales
B) Internet portals
C) online book sales
D) Internet service providers
A
22) Which of the following is not one of the current main
areas of growth in mobile e-commerce?
A) sales of financial services
B) retail sales at the top mobile companies
C) sales of digital content
D) sales of apps
A
23) Which of the following is an example of a geosocial
mobile service?
A) Kickstarter.com
B) Foursquare
C) Shopkick
D) Facebook
B
24) How are the Internet and e-commerce causing
severe disruption to the existing advertising business
model?
A) Ties between customer and businesses are being
rethought.
B) Technology players such as Yahoo! seek to dominate
online advertising and expand into offline ad brokerage.
C) New methods of advertising, such as blog advertising,
are emerging.
D) The market entry costs for online advertising services
are extremely low.
B
25) The quality of ubiquity, as it relates to e-commerce,
is illustrated by
A) the same set of standards being used across the

globe.
B) the spread of plentiful, cheap information.
C) the enabling of commerce worldwide.
D) the availability of the Internet everywhere and
anytime.
D
26) Which of the following is not a recent development
in e-commerce?
A) Mobile e-commerce takes off.
B) Social networking sites become a new platform for ecommerce.
C) The music recording industry is disrupted as music
creation and distribution become decentralized.
D) Online entertainment business models surge.
C
27) Which of the following is not one of the unique
features of e-commerce technology?
A) information density
B) transparency
C) richness
D) social technology
B
28) Which feature of Internet technology has had the
most effect in the Internet's rapid spread across the
globe?
A) ubiquity
B) global reach
C) universal standards
D) social technology
C
29) The act of engaging consumers in a dialog that
dynamically adjusts the experience to the individual
describes which dimension of e-commerce technology?
A) ubiquity
B) personalization/customization

C) richness
D) interactivity
D
30) The integration of video, audio, and text marketing
messages into a single marketing message and
consumer experience describes which dimension of ecommerce technology?
A) ubiquity
B) personalization/customization
C) richness
D) interactivity
C
31) The lowered costs of information storage,
processing, and communication, along with the
improvement of data quality, has resulted in which
unique quality of e-commerce?
A) information density
B) richness
C) customization
D) interactivity
A
32) The effort required to locate a suitable product is
called
A) price discrimination.
B) search costs.
C) menu costs.
D) shopping costs.
B
33) Information density refers to the
A) richnesscomplexity and contentof a message.
B) total amount and quantity of information delivered to
consumers by merchants.
C) total amount and quantity of information available to
all market participants.
D) amount of information available to reduce price
transparency.

C
34) Selling the same goods to different targeted groups
at different prices is called
A) cost customization.
B) cost optimization.
C) price gouging.
D) price discrimination.
D
35) Information ________ exists when one party in a
transaction has more information that is important for
the transaction than the other party.
A) transparency
B) asymmetry
C) complexity
D) discrimination
B
36) Varying a product's price according to the supply
situation of the seller is called ________ pricing.
A) menu
B) flexible
C) dynamic
D) asymmetric
C
37) Reducing the business process layers in a
distribution channel is called
A) disintermediation.
B) BPR.
C) market segmentation.
D) network effects.
A
38) Digital goods are goods that are
A) produced digitally.
B) sold over digital networks.
C) delivered digitally.
D) used with digital equipment

C
39) Compared to digital markets, traditional markets
have
A) lower search costs.
B) stronger network effects.
C) higher delayed gratification effects.
D) higher transaction costs.
D
40) Compared to traditional goods, digital goods have
A) greater pricing flexibility.
B) lower marketing costs.
C) higher production costs.
D) higher inventory costs.
A
41) Compared to traditional markets, digital markets
have
A) lower distributed delivery costs.
B) higher marginal costs per unit.
C) equivalent copying costs.
D) similar inventory costs.
A
42) eBay is an example of
A) C2C e-commerce.
B) B2B e-commerce.
C) B2C e-commerce.
D) M-commerce.
A
43) Selling products and services directly to individual
consumers via the Internet best describes
A) B2B e-commerce.
B) C2C e-commerce.
C) M-commerce.
D) B2C e-commerce.
D

44) Consumers selling goods and services electronically


to other consumers best describes
A) disintermediation.
B) C2C e-commerce.
C) M-commerce.
D) B2C e-commerce.
B
45) Which of the following businesses utilizes the
content provider Internet business model?
A) Amazon.com
B) eBay.com
C) CNN.com
D) Motocross.com
C
46) Which of the following Internet business models
does Amazon.com use?
A) content provider
B) portal
C) market creator
D) e-tailer
D
47) Transaction brokers
A) generate revenue from advertising or from directing
buyers to sellers.
B) save users money and time by processing online sales
transactions.
C) provide a digital environment where buyers and
sellers can establish prices for products.
D) sell physical products directly to consumers or
individual businesses.
B
48) Market creators
A) save users money and time by processing online sales
transactions.
B) provide a digital environment where buyers and
sellers can establish prices for products.

C) create revenue by providing digital content over the


Web.
D) sell physical products directly to consumers or
individual businesses.
B
49) Which of the following best describes why small
world theory is important to e-commerce?
A) The products bought online by one individual will
influence purchases by others.
B) The greater the number of people using your product,
the more valuable it becomes.
C) You do not need to attract a large consumer base to
become profitable.
D) Global products create a global community.
A
50) 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.
D
51) In which of the following revenue models does a
Web site charge a fee for access to some or all of its
offerings on a continual, regular basis?
A) subscription
B) free/freemium
C) transaction fee
D) sales
A

52) Which of the following best illustrates the affiliate


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.
B
53) Which of the following best illustrates the
transaction fee 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.
A
54) ________ describes that a large group of people is
better at making correct decisions than a single person.
A) The wisdom of crowds
B) Outsourcing
C) Crowdsourcing
D) Social graphing
A
55) Netflix's public announcement of a reward for a
technology solution to its movie recommendation
system is an example of
A) prediction markets.
B) behavioral targeting.

C) long-tail marketing.
D) crowdsourcing.
D
56) Exposing an individual to ads that are chosen and
based on the recorded and analyzed online behavior of
the individual is referred to as
A) clickstream advertising.
B) behavioral targeting.
C) online profiling.
D) long tail marketing.
B
57) Which of the following was the leading online
advertising format in 2012?
A) display ads
B) e-mail
C) classifieds
D) search engine
D
58) Which of the following statements about B2B
commerce is not true?
A) Eighty percent of online B2B e-commerce is still
based on EDI.
B) B2B e-commerce represents approximately threequarters of the overall B2B marketplace.
C) B2B e-commerce only includes commercial
transactions between firms.
D) B2B e-commerce revenues in 2012 were over $4
trillion.
B
59) EDI is
A) the use of Internet technologies for electronic data
transactions.
B) the exchange between two organizations of standard
transactions through a network.
C) electronic data invoicing.
D) electronic delivery infrastructure.

B
60) The process of sourcing goods and materials,
negotiating with suppliers, paying for goods, and
making delivery arrangements is called
A) e-procurement.
B) SCM.
C) procurement.
D) sourcing.
C
61) An extranet that links a large firm to its suppliers
and other key business partners is called a(n)
A) e-hub.
B) marketspace.
C) exchange.
D) private industrial network
D
62) E-hubs are more ________ than private industrial
networks.
A) transaction-oriented
B) collaborative
C) independent
D) supply-chain oriented
A
63) A mapping of a person's significant online, personal
relationships is called a social
A) Web.
B) graph.
C) community.
D) map.
B
64) A third-party Net marketplace that connects many
buyers and suppliers for spot purchasing is called a(n)
A) exchange.
B) vertical market.

C) private exchange.
D) e-hub.
A
65) Goods that are involved in the actual production
process are referred to as
A) raw materials.
B) direct goods.
C) purchasing goods.
D) indirect goods.
B
66) Which of the following statements about mcommerce is not true?
A) In 2012, m-commerce represented less than 10
percent of all e-commerce.
B) M-commerce is the fastest growing form of ecommerce.
C) M-commerce annual revenues are approximately $30
billion.
D) In 2012, the top-grossing category of m-commerce
was e-book sales.
D
67) You are building an e-commerce Web site that will
sell e-books and are looking for a hosted solution.
Which of the following functionalities is least important
for your business goals?
A) site tracking system
B) inventory management
C) digital catalog
D) customer database
B
68) You are planning the requirements for a site tracking
and reporting system for your company Web site. Which
of the following information requirements would not be
essential for this function?
A) number of unique visitors
B) pages visited

C) products purchased
D) secure credit card clearing
D
69) Which of the following is the least costly way to build
a Web site?
A) Outsource the Web site development to overseas
vendors.
B) Use a hosted solution and pre-built templates.
C) Build your site yourself from scratch using existing
software.
D) Use a site-building package.
B
70) You are advising an accounting firm that wants to
establish its first Web site. Approximately how much of
the Web site budget should you assign to purchasing
software?
A) 10 percent
B) 25 percent
C) 50 percent
D) none, as no software will need to be purchased
A
Chapter 9
21) Through what channel did e-commerce first evolve?
Online advertising sales

22) Based on your reading of the chapter, e-commerce is:


Still in a revolutionary phase.

23) A marketplace extended beyond traditional boundaries and


removed from a temporal and geographic location is called a(n):
Marketspace

24) Which of the following is not a recent development in ecommerce?


The music recording industry is disrupted as music creation and
distribution become decentralized.

25) How are the Internet and e-commerce causing severe


disruption to the existing advertising business model?
Technology players such as Yahoo! seek to dominate online
advertising and expand into offline ad brokerage.

26) The quality of ubiquity, as it relates to e-commerce, is


illustrated by:
The availability of the Internet everywhere and anytime.

27) Which of the following is not one of the unique features of ecommerce technology?
Transparency

28) The act of engaging consumers in a dialog that dynamically


adjusts the experience to the individual describes which
dimension of e-commerce technology?
Interactivity

29) The integration of video, audio, and text marketing messages


into a single marketing message and consumer experience
describes which dimension of e-commerce technology?
Richness

30) The lowered costs of information storage, processing, and


communication, along with the improvement of data quality, has
resulted in which unique quality of e-commerce?
Information density
31) The effort required to locate a suitable product is called:
Search costs.
32) Information density refers to the:
Total amount and quantity of information available to all market
participants.
33) Selling the same goods to different targeted groups at
different prices is called:
Price discrimination.

34) Information ________ exists when one party in a transaction


has more information that is important for the transaction than the
other party.
Asymmetry
35) Which feature of Internet technology has had the most effect
in the Internet's rapid spread across the globe?
Universal standards
36) Varying a product's price according to the supply situation of
the seller is called ________ pricing.
Dynamic
37) Reducing the business process layers in a distribution
channel is called:
Disintermediation.
38) Digital goods are goods that are:
Delivered digitally.
39) Compared to digital markets, traditional markets have:
Higher transaction costs.
40) Compared to traditional goods, digital goods have:
Greater pricing flexibility.
41) Compared to traditional goods, digital goods incur:
Lower distribution costs.
42) Which of the following Internet business models does
Amazon.com use?
E-tailer
43) eBay is an example of:
C2C e-commerce.
44) Selling products and services directly to individual consumers
via the Internet best describes:
B2C e-commerce.
45) Consumers selling goods and services electronically to other
consumers best describes:
C2C e-commerce.
46) Which of the following businesses utilize the content provider
Internet business model?
CNN.com
47) Transaction brokers:

Save users money and time by processing online sales


transactions.
48) In which of the following Internet business models does a
merchant create an online digital environment that enables
people with like interests to share information?
Community provider
49) Market creators:
Provide a digital environment where buyers and sellers can
establish prices for products.
50) Which of the following best illustrates the sales revenue
model?
Apple accepts micropayments for single music track downloads.
51) Which of the following best illustrates the affiliate revenue
model?
Epinions receives a fee after steering a customer to a
participating Web site where he or she makes a purchase.
52) Which of the following best illustrates the transaction fee
revenue model?
eBay receives a small fee from a seller if a seller is successful in
selling an item.
53) In which of the following revenue models does a Web site
charge a fee for access to some or all of its offerings on a
continual, regular basis?
Subscription
54) ________ describes the concept that a large group of people
is better at making good decisions than a single person.
The wisdom of crowds
55) Netflix's public announcement of a reward for a technology
solution to its movie recommendation system is an example of:
Crowdsourcing.
56) Exposing an individual to ads that are chosen and based on
the recorded and analyzed online behavior of the individual is
referred to as:
Behavioral targeting.
57) Which of the following best describes the digital social graph?
A mapping of all online social relationships

58) Which of the following statements about B2B commerce is


not true?
B2B e-commerce represents approximately 10% of the overall
B2B marketplace.
59) EDI is:
The exchange between two organizations of standard
transactions through a network.
60) The process of sourcing goods and materials, negotiating
with suppliers, paying for goods, and making delivery
arrangements is called:
Procurement.
61) A secure Web site that links a large firm to its suppliers and
other key business partners is called a(n):
Private industrial network.
62) E-hubs are more ________ than private industrial networks.
Transaction oriented
63) Net marketplaces:
Are industry owned or operate as independent intermediaries
between buyers and sellers.
64) A third-party Net marketplace that connects many buyers and
suppliers for spot purchasing is called a(n):
Exchange.
65) Goods that are involved in the actual production process are
referred to as:
Direct goods.
66) Which of the following statements about m-commerce is not
true?
In 2013, the main areas of growth are in online banking and
location-based services.
67) Which of the following social commerce features allows
social network sites to gather and distribute to others information
about which products a user likes and dislikes?
Network notification
68) Which of the following is a marketing format that uses banner
ads and pop-ups with interactive features?
Display ads

69) 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.
Geoinformational
70) Which of the following is not one of the platforms to be
considered in building a Web site presence?
Facebook platform
73) Content providers use ________ systems to process large
amounts of very small monetary transactions cost-effectively.
Micropayment
75) The Internet enables ________ marketing by leveraging the
fact that there is always some demand, however small, for a
product.
Long-tail
77) ________ is a peer-to-peer market in which participants bet
on the outcomes of current events, business, or social trends.
A prediction market
79) Which of the following is not one of the four main types of ecommerce presence?
Blogs
80) Geoadvertising sends ads to users based on their:
GPS locations.

Chapter 9
21) Through what channel did e-commerce first evolve?
A) Online advertising sales
B) Internet portals
C) Online book sales
D) Internet service providers
Answer: A
22) Based on your reading of the chapter, e-commerce is:
A) still in a revolutionary phase.
B) widely accepted by consumers, although technology is still quickly changing.
C) not yet fully accepted by consumers, although much of its driving technology is firmly in
place.
D) well entrenched as a form of modern commerce.
Answer: A
23) The quality of ubiquity, as it relates to e-commerce, is illustrated by:
A) the same set of standards being used across the globe.
B) the spread of plentiful, cheap information.
C) the enabling of commerce worldwide.

D) the availability of the Internet everywhere and anytime.


Answer: D

24) A marketplace extended beyond traditional boundaries and removed from a temporal and
geographic location is called a(n):
A) exchange.
B) marketspace.
C) online marketplace.
D) e-hub.
Answer: B
25) In which of the following Internet business models does a merchant create an online
digital environment that enables people with like interests to share information or buy and
sell goods?
A) Community provider
B) Service provider
C) Market creator
D) Transaction broker
Answer: A
26) 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.
Answer: C
27) How is the Internet and e-commerce causing severe disruption to the existing advertising
business model?
A) Ties between customer and businesses are being rethought.
B) Technology players such as Yahoo! seek to dominate online advertising and expand into
offline ad brokerage.
C) New methods of advertising, such as blog advertising, are emerging.
D) The market entry costs for online advertising services are extremely low.
Answer: B
28) Which of the following is not one of the unique features of e-commerce technology?
A) Information density
B) Transparency
C) Richness
D) Social technology
Answer: B

29) The act of engaging consumers in a dialog that dynamically adjusts the experience to the
individual describes which dimension of e-commerce technology?
A) Ubiquity
B) Personalization/customization
C) Richness
D) Interactivity
Answer: D
30) The integration of video, audio, and text marketing messages into a single marketing
message and consumer experience describes which dimension of e-commerce technology?
A) Ubiquity
B) Personalization/customization
C) Richness
D) Interactivity
Answer: C
31) The effort required to locate a suitable product is called:
A) price discrimination.
B) search costs.
C) menu costs.
D) shopping costs.
Answer: B
32) The lowered costs of information storage, processing, and communication, along with the
improvement of data quality, has resulted in which unique quality of e-commerce?
A) Information density
B) Richness
C) Customization
D) Interactivity
Answer: A
33) Information density refers to the:
A) richnesscomplexity and contentof a message.
B) total amount and quantity of information delivered to consumers by merchants.
C) total amount and quantity of information available to all market participants.
D) amount of information available to reduce price transparency.
Answer: C
34) Selling the same goods to different targeted groups at different prices is called:
A) cost customization.
B) cost optimization.
C) price gouging.
D) price discrimination.
Answer: D
35) Information ________ exists when one party in a transaction has more information that is
important for the transaction than the other party.
A) transparency
B) asymmetry
C) complexity
D) discrimination

Answer: B

36) The cost to a merchant of changing the price of a product is called a ________ cost.
A) pricing
B) dynamic pricing
C) menu
D) switching
Answer: C
37) Varying a product's price according to the supply situation of the seller is called
________ pricing.
A) menu
B) flexible
C) dynamic
D) asymmetric
Answer: C
38) Compared to digital markets, traditional markets have:
A) lower search costs.
B) stronger network effects.
C) higher delayed gratification effects.
D) higher transaction costs.
Answer: D
39) Reducing the business process layers in a distribution channel is called:
A) disintermediation.
B) BPR.
C) market segmentation.
D) network effects.
Answer: A
40) Digital goods are goods that are:
A) produced digitally.
B) sold over digital networks.
C) delivered digitally.
D) used with digital equipment.
Answer: C
41) Compared to traditional goods, digital goods have:
A) greater pricing flexibility.
B) lower marketing costs.
C) higher production costs.
D) higher inventory costs.
Answer: A
42) Compared to traditional markets, digital markets have:
A) lower distributed delivery costs.
B) higher marginal costs per unit.
C) equivalent copying costs.
D) similar inventory costs.

Answer: A
43) Which of the following Internet business models does Amazon.com use?
A) Content provider
B) Portal
C) Market creator
D) E-tailer
Answer: D
44) Which of the following businesses utilizes the content provider Internet business model?
A) Amazon.com
B) eBay.com
C) CNN.com
D) Motocross.com
Answer: C
45) Transaction brokers:
A) generate revenue from advertising or from directing buyers to sellers.
B) save users money and time by processing online sales transactions.
C) provide a digital environment where buyers and sellers can establish prices for products.
D) sell physical products directly to consumers or individual businesses.
Answer: B
46) Market creators:
A) save users money and time by processing online sales transactions.
B) provide a digital environment where buyers and sellers can establish prices for products.
C) create revenue by providing digital content over the Web.
D) sell physical products directly to consumers or individual businesses.
Answer: B
47) 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.
Answer: D

48) Which of the following best illustrates the affiliate 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.
Answer: B
49) Which of the following best illustrates the transaction fee 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.
Answer: A
50) In a phenomenon called ________, some argue that large numbers of people can make
better decisions about a wide range of topics or products than a single person or even a small
committee of experts
A) the wisdom of crowds
B) outsourcing
C) crowdsourcing
D) social networking
Answer: A
51) Netflix's public announcement of a reward for a technology solution to its movie
recommendation system is an example of:
A) prediction markets
B) behavioral targeting
C) long-tail marketing
D) crowdsourcing
Answer: D
52) EBay is an example of:
A) C2C e-commerce.
B) B2B e-commerce.
C) B2C e-commerce.
D) M-commerce.
Answer: A
53) Selling products and services directly to individual consumers via the Internet best
describes:
A) B2B e-commerce.
B) C2C e-commerce.
C) M-commerce.
D) B2C e-commerce.
Answer: D
54) Consumers selling goods and services electronically to other consumers best describes:
A) disintermediation.
B) C2C e-commerce.
C) M-commerce.
D) B2C e-commerce.
Answer: B
55) Exposing an individual to ads that are chosen and based on the recorded and analyzed
online behavior of the individual is referred to as:
A) clickstream advertising.
B) behavioral targeting.
C) online profiling.
D) long tail marketing.
Answer: B

56) Which of the following was the leading advertising format in 2009?
A) Display ads
B) E-mail
C) Classifieds
D) Search engine
Answer: D
57) Which of the following statements about B2B commerce is not true?
A) Eighty percent of online B2B e-commerce is still based on EDI.
B) B2B e-commerce represents approximately three-quarters of the overall B2B marketplace.
C) B2B e-commerce only includes commercial transactions between firms.
D) B2B e-commerce revenues in 2009 were over $3 trillion.
Answer: B

58) Goods that are involved in the actual production process are referred to as:
A) raw materials.
B) direct goods.
C) purchasing goods.
D) indirect goods.
Answer: B

59) Which of the following statements about m-commerce is not true?


A) In 2009, m-commerce represented less than 10 percent of all e-commerce.
B) M-commerce is the fastest growing form of e-commerce.
C) M-commerce applications are especially popular in Europe, Japan, and South Korea.
D) In 2009, the top-grossing category of m-commerce was e-book sales.
Answer: D

60) The system functionalities of an e-commerce site are best described as the:
A) general capabilities wanted.
B) information systems capabilities wanted.
C) information elements needed.
D) software and hardware required.
Answer: B
61) EDI is:
A) the use of Internet technologies for electronic data transactions.
B) the exchange between two organizations of standard transactions through a network.
C) electronic data invoicing.
D) electronic delivery infrastructure.
Answer: B

62) The process of sourcing goods and materials, negotiating with suppliers, paying for
goods, and making delivery arrangements is called:
A) procurement.
B) e-procurement.

C) SCM.
D) sourcing.
Answer: A

63) An extranet that links a large firm to its suppliers and other key business partners is called
a(n):
A) e-hub.
B) marketspace.
C) exchange.
D) private industrial network.
Answer: D

64) E-hubs are more ________ than private industrial networks.


A) transaction-oriented
B) collaborative
C) independent
D) supply-chain oriented
Answer: A
65) Net marketplaces:
A) focus on continuous business process coordination between companies for supply chain
management.
B) are industry owned or operate as independent intermediaries between buyers and sellers.
C) are geared towards short-term spot purchasing.
D) are more relationship oriented than private industrial networks.
Answer: B
66) A third-party Net marketplace that connects many buyers and suppliers for spot
purchasing is called a(n):
A) exchange.
B) vertical market.
C) private exchange.
D) e-hub.
Answer: A

67) Which of the following is not one of the categories of services that are popular for mcommerce?
A) location-based services
B) financial services.
C) games and entertainment.
D) retail shopping.
Answer: D
68) In the United States, m-commerce:
A) has become widely adopted.
B) is still in its infancy.
C) now represents a major fraction of total e-commerce transactions.
D) is growing slowly.

Answer: B

69) You are planning the requirements for a site tracking and reporting system for your
company Web site. Which of the following information requirements would not be essential
for this function?
A) Number of unique visitors
B) Pages visited
C) Products purchased
D) Secure credit card clearing
Answer: D
70) In which of the following revenue models does a Web site charge a fee for access to some
or all of its offerings on a continual, regular basis?
A) Subscription
B) Free/freemium
C) Transaction fee
D) Sales
Answer: A

71) Content providers use ________ systems to process large amounts of very small
monetary transactions cost-effectively.
Answer: micropayment
72) ________ refers to the ability of consumers to discover what merchants actually pay for
products.
Answer: Cost transparency

73) ________ are the merchants' costs of changing prices.


Answer: Menu costs

74) Online ________ marketing is like traditional word-of-mouth marketing except that it is
spread via online communities.
Answer: viral
75) The Internet enables ________ marketing, by leveraging the fact that there is always
some demand, however small, for a product.
Answer: long-tail

76) A(n) ________ is another term for a private industrial network.


Answer: private exchange
77) The ________ targeting of ads results in consumers responding ten times more
frequently than when delivered ads randomly.
Answer: behavioral

78) ________ goods, such as office supplies, are those not involved firsthand in the
production process.
Answer: Indirect

79) In Web server ________, a firm purchases or leases a Web server but locates the server in
a vendors physical facility.
Answer: co-location

80) Before building an e-commerce site, business objectives and functionalities must be
translated into a set of precise information ________.
Answer: requirements
Chap 11
21) What was the primary problem facing the Girl Scouts regarding their supply chain
problems?
A) Ordering process was inefficient for a large volume of orders
B) High error rates in ordering and fulfillment
C) Required too much time of volunteers
D) Paper-based system was outdated
Answer: A
22) Order the following steps in the systems development process in the correct sequence.
A) Systems analysis, systems design, hardware and software acquisition, testing, training
and documentation, conversion, production, and maintenance
B) Systems analysis, systems design, hardware and software acquisition, training and
documentation, conversion, testing, production, and maintenance
C) Systems analysis, systems design, hardware and software acquisition, testing, training
and documentation, production, conversion, and maintenance
D) Systems design, hardware and software acquisition, testing, training and documentation,
conversion, production, maintenance, and systems analysis
Answer: A

23) Which of the following is not part of the implementation process?


A) Evaluating the system
B) Testing
C) Systems analysis
D) Creating detailed design specifications
Answer: C
24) 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
Answer: B

25) Developing an information system has been compared to the problem-solving process.
Which one of the following problem-solving steps is not a part of systems analysis?
A) Implement the solution

B) Choose the best solution


C) Develop alternative solutions
D) Define and understand the problem
Answer: A
26) The entire system-building effort is driven by:
A) organizational change.
B) feasibility studies.
C) data.
D) user information requirements.
Answer: D
27) Systems design:
A) identifies the system's information requirements.
B) specifies how the new system will fulfill the information requirements.
C) identifies alternate solutions for solving the problem.
D) defines the problem and specifies its causes.
Answer: B

28) Determining methods for feedback and error handling would be defined by which system
design specification category?
A) Training and documentation
B) User interface
C) Manual procedures
D) Security and controls
Answer: B

29) Transferring transaction data from a legacy system to the new system would be defined
by which system design specification category?
A) Input
B) Database
C) Manual procedures
D) Conversion
Answer: D
30) System design specifications that address database issues will include specifications for:
A) volume and speed requirements.
B) data entry.
C) input, processing, and output controls.
D) program logic and computations.
Answer: A
31) System design specifications that address input issues will include specifications for:
A) training modules and platforms.
B) flow and data entry.
C) input, processing, and output controls.
D) medium and content.
Answer: B

32) Unit testing:


A) includes all the preparations for the series of tests to be performed on the system.
B) tests the functioning of the system as a whole in order to determine if discrete modules
will function together as planned.

C) tests each individual program separately.


D) provides the final certification that the system is ready to be used in a production setting.
Answer: C

33) System testing:


A) includes all the preparations for the series of tests to be performed on the system.
B) tests the functioning of the system as a whole in order to determine if discrete modules
will function together as planned.
C) tests each program separately.
D) provides the final certification that the system is ready to be used in a production setting.
Answer: B
34) Acceptance testing:
A) includes all the preparations for the trials.
B) tests the functioning of the system as a whole in order to determine if discrete modules
will function together as planned.
C) tests each program separately.
D) provides the final certification that the system is ready to be used in a production setting.
Answer: D
35) In a parallel conversion strategy, the new system:
A) is tested by an outsourced company.
B) replaces the old one at an appointed time.
C) and the old are run together.
D) is introduced in stages.
Answer: C
36) In a direct cutover conversion strategy, the new system:
A) is tested by an outsourced company.
B) replaces the old one at an appointed time.
C) and the old are run together.
D) is introduced in stages.
Answer: B

37) The Girl Scouts' conversion strategy of first introducing the modules for ordering cookies
and then introducing the modules for transmitting orders and instructions to the cookie
factory and shipper is called a(n) ________ strategy.
A) phased approach
B) direct cutover
C) indirect cutover
D) incremental conversion
Answer: A
38) Changes in hardware, software, documentation, or production to a production system to
correct errors, meet new requirements, or improve processing efficiencies are termed:
A) compliance.
B) production.
C) maintenance.
D) acceptance.
Answer: C
39) The oldest method for building information systems is:
A) component-based development.
B) prototyping.

C) object-oriented development.
D) the systems development lifecycle.
Answer: D
40) In the traditional systems development lifecycle, end users:
A) are important and ongoing members of the team from the original analysis phase through
maintenance.
B) are important only in the testing phases.
C) have no input.
D) are limited to providing information requirements and reviewing the technical staff's work.
Answer: D

41) As a technical project manager you have decided to propose implementing a prototyping
methodology for a small Web-based design project. What is the order of steps you will follow
in this project?
A) Develop the prototype; use the prototype; revise and enhance the prototype
B) Identify user requirements, develop the prototype, use the prototype, revise and enhance
the prototype
C) Define the requirements, develop solutions, select the best prototype, and implement the
prototype
D) Define the requirements, develop the prototype, revise and enhance the prototype
Answer: B
42) 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.
Answer: D
43) Fourth-generation tools cannot replace conventional development tools because they:
A) cannot handle large numbers of transactions or extensive procedural logic.
B) are not designed to integrate with legacy systems.
C) do not incorporate methods for documentation.
D) do not incorporate methods for testing.
Answer: A
44) Management can control the development of end-user applications in part by:
A) developing a formal development methodology.
B) requiring cost justification for end-user IS projects.
C) establishing standards for project requirements.
D) requiring Gantt charts
Answer: C
45) If an organization's requirements conflict with the software package chosen and the
package cannot be customized, the organization will have to:
A) change its procedures.
B) outsource the development of the system.
C) redesign the RFP.
D) change the evaluation process.
Answer: A

46) "Hidden costs" such as ________ costs can easily undercut anticipated benefits from
outsourcing.

A) vendor selection
B) hardware
C) software
D) employee salary
Answer: A
47) The process of creating workable information systems in a very short period of time is
called:
A) RAD.
B) JAD.
C) prototyping.
D) end-user development.
Answer: A
48) This type of systems development is characterized by significantly speeding up the
design phase and the generation of information requirements and involving users at an
intense level.
A) RAD
B) JAD
C) Prototyping
D) End-user development
Answer: B

49) The term structured, when discussing structured methodologies, refers to the fact that:
A) the finished software is highly documented.
B) the development process is highly documented.
C) the techniques are step by step, with each step building on the previous one.
D) a defined hierarchy of objects and classes are used to structure the programming.
Answer: C
50) The primary tool for representing a system's component processes and the flow of data
between them is the:
A) data dictionary.
B) process specifications diagram.
C) user documentation.
D) data flow diagram.
Answer: D
51) You are an IT project manager for an advertising firm. The firm wishes to create an
online survey tool that will be used to survey focus group reactions to products in
development. The most important consideration for the firm is being able to offer the tool as
soon as possible as a new corporate service. However, you know that many of the senior
managers that are business owners of this project have difficulty in understanding technical
or software development issues, and are likely to change their requirements during the
course of development. What development method would be most successful for this
project?
A) RAD
B) JAD
C) End-user development
D) Prototyping
Answer: D
52) To show each level of a system's design, its relationship to other levels, and its place in
the overall design structure, structured methodologies use:
A) structure charts.

B) Gantt charts and PERT.


C) process specifications diagrams.
D) data flow diagrams.
Answer: A
53) An entire information system is broken down into its main subsystems by using:
A) high-level data flow diagrams.
B) low-level data flow diagrams.
C) process specifications.
D) structured diagrams.
Answer: A
54) In an object-oriented development framework for a university, how would the classes
Degree, Mathematics, and Physics be related?
A) Degree would be a sister class to Mathematics and Physics.
B) Degree is a superclass to Mathematics and Physics.
C) Mathematics and Physics would be ancestors to Degree.
D) Degree would be a subclass to Mathematics and Physics.
Answer: B
55) Object-oriented modeling is based on the concepts of:
A) objects and relationships.
B) classes and objects.
C) class and inheritance.
D) objects and inheritance.
Answer: C
56) Object-oriented development could potentially reduce the time and cost of writing
software because:
A) object-oriented programming requires less training.
B) iterative prototyping is not required.
C) objects are reusable.
D) a single user interface object can be used for the entire application.
Answer: C
57) 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) Object-oriented development
B) Component-based development
C) Structured methodologies
D) RAD
Answer: B
58) 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.
Answer: B
59) ________ provides software tools to automate development methodologies and reduce
the amount of repetitive work in systems development.
A) CASE
B) CAD

C) JAD
D) RAD
Answer: A
60) ________ refers to the application of knowledge, skills, tools, and techniques to achieve
specific targets within specified budget and time constraints.
A) Systems analysis
B) Systems design
C) Project management
D) Project implementation
Answer: C

61) The worth of systems from a financial perspective essentially revolves around the
question of:
A) systems ownership.
B) information requirements.
C) multiyear financial models.
D) return on invested capital.
Answer: D
62) ________ are tangible benefits of information systems.
A) Improved asset utilization, increased organizational learning, and improved operations
B) Reduced workforce, lower outside vendor costs, and increased productivity
C) Increased productivity, reduced workforce, and increased job satisfaction
D) Lower operational costs, improved resource control, and more information
Answer: B
63) ________ are intangible benefits of information systems.
A) Improved asset utilization, increased organizational learning, and improved operations
B) Reduced workforce, lower outside vendor costs, and increased productivity
C) Increased productivity, reduced workforce, and increased job satisfaction
D) Lower operational costs, improved resource control, and more information
Answer: A
64) Which process is used to develop risk profiles for a firm's information system projects
and assets?
A) Information systems plan
B) Scoring model
C) Portfolio analysis
D) Feasibility study
Answer: C

65) You have been hired by a pharmaceutical company to evaluate its portfolio of systems
and IT projects. Which types of projects would be best avoided?
A) Any high risk projects
B) Any low-benefit projects
C) High-risk, low benefit projects
D) None any project might be beneficial
Answer: C
66) A business document indicating the direction of systems development, the rationale, the
current systems, new developments to consider, the management strategy, the
implementation plan, and the budget is called a(n):
A) project plan.

B) request for proposal.


C) information systems plan.
D) mission statement.
Answer: C

67) The project risk will rise if the project team and the IS staff lack:
A) RAD experience.
B) web services.
C) the required technical expertise.
D) CASE tools.
Answer: C
68) Users prefer systems that:
A) are oriented to facilitating organizational tasks and solving business problems.
B) work with existing DBMS.
C) are able to provide optimum hardware and software efficiency.
D) are capable of storing much more data than they need.
Answer: A

69) A ________ shows each task as a horizontal bar whose length is proportional to the time
required to complete it.
A) PERT chart
B) DFD
C) feasibility study
D) Gantt chart
Answer: D
70) Which of the following tools may help identify risk areas associated with employee
acceptance of a new information system?
A) Formal planning and control tools
B) Organizational impact analysis
C) System prototype
D) Feasibility study
Answer: B

71) A systems analysis includes a(n) ________ study that is used to determine whether the
solution is achievable, from a financial, technical, and organizational standpoint.
Answer: feasibility

72) A(n) ________ includes all the preparations for the series of tests to be performed on the
system.
Answer: test plan

73) ________ is the process of changing from the old system to the new system.
Answer: Conversion
74) A(n) ________ is the preliminary working version of an information system.
Answer: prototype

75) A(n) ________ is a detailed list of questions submitted to external vendors to determine
how well they meet the organization's specific requirements.
Answer: Request for Proposal/RFP
76) ________ is the modification of a software package to meet the organization's unique
requirements without destroying the package software's integrity.
Answer: Customization
77) ________ describe the transformation occurring within the lowest level of the data flow
diagrams. They express the logic of each process.
Answer: Process specifications
78) ________ benefits are those than can be quantified and assigned a monetary value.
Answer: Tangible
79) A(n) ________ is a method for deciding among alternative systems based on a system
of ratings for selected objectives.
Answer: scoring model

80) ________ is the interaction of people and machines in the work environment, including
the design of jobs, health issues, and the end-user interface of information systems.
Answer: Ergonomics

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