IS 3630 Modern Information Systems: MCQ simple banking

1) A collection of raw facts is called

a. Output
b. Information
c. Bits
d. Data
2) Which of the following are key corporate assets
a. intellectual property, core competencies, and financial and human assets
b. production technologies and business processes for sales, marketing, and finance
c. knowledge and the firm`s tangible assets, such as goods or services
d. time and knowledge
3) A collaborative network that uses Internet Technology to link business with their suppliers is
a. Internet
b. Intranet
c. Extranet
d. WAN
4) The highest percentage of victims of computer crime are in
a. Banks
b. Commercial Users
c. Government
d. University
5) The management level responsible for making long range strategic decisions about which
products and services to produce is the
a. Technology Level
b. Application Level
c. Operational Level
d. Top Level
6) Verizon's implementation of a Web-based digital dashboard to provide managers with realtime information such as customer complaints is an example of
a. improved flexibility.
b. improved decision making.
c. improved efficiency.
d. customer and supplier intimacy.
7) Converting raw data into a more meaningful form is called
a. capturing.
b. processing.
c. organizing.
d. feedback.
8) Which of the following choices may lead to competitive advantage: (1) new products,
services, and business models; (2) charging less for superior products; (3) responding to
customers in real time
a. 1 only
b. 1 and 2
c. 2 and 3
d. 1, 2, and 3

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9) The six important business objectives of information technology are new products, services,
and business models; customer and supplier intimacy; survival; competitive advantage;
operational excellence; and
a. improved flexibility.
b. improved decision making.
c. improved business practices.
d. improved efficiency.
10) Data management technology consists of the
a. physical hardware and media used by an organization for storing data.
b. detailed, preprogrammed instructions that control and coordinate the computer hardware
components in an information system.
c. software governing the organization of data on physical storage media.
d. hardware and software used to transfer data.
11) The field that deals with behavioral issues as well as technical issues surrounding the
development, use, and impact of information systems used by managers and employees in
the firm is called
a. information systems literacy.
b. information systems architecture.
c. management information systems.
d. information technology infrastructure.
12) The use of information systems because of necessity describes the business objective of
a. survival.
b. improved business practices.
c. competitive advantage.
d. improved flexibility.
13) Based on the examples in the chapter, if you were asked to formulate a plan for a regional
drive-in restaurant chain's efforts to use information technology to develop a loyal customer
base, what would be the best use of information technology from the list below?
a. Use IT to increase supplier loyalty.
b. Use IT to increase operational efficiency.
c. Use IT to create new products and business models.
d. Use IT to help survive government reporting requirements.
e. Use IT to achieve customer intimacy.
14) An example of an organizational complementary asset is
a. using the appropriate business model.
b. a collaborative work environment.
c. laws and regulations.
d. all of the above.
15) Order data for baseball tickets and bar code data are examples of
a. raw input.
b. raw output.
c. customer and product data.
d. sales information.
16) Overproduction or underproduction of goods and services, misallocation of resources, and
poor response times are the results of a firm's having
a. poor relationships with suppliers.
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b. poor relationships with customers.
c. inadequate information.
d. a surplus of information.
17) The average number of tickets sold daily online is an example of
a. input.
b. raw data.
c. meaningful information.
d. feedback.
18) From a business perspective, raw data is transformed systematically during various stages,
transforming it into valuable information, in a process called
a. the information value chain.
b. the IT value chain.
c. information processing.
d. feedback.
19) In a business hierarchy, the level that is responsible for monitoring the daily activities of the
business is
a. middle management.
b. service workers.
c. production management.
d. operational management.
20) Which field of study focuses on both a behavioral and technical understanding of information
systems
a. sociology
b. operations research
c. economics
d. management information systems
21) The fundamental set of assumptions, values, and ways of doing things that has been accepted
by most of a company's members is called its
a. culture.
b. environment.
c. atmosphere.
d. values.
22) The hardware and software used to transfer data in an organization is called
a. data management technology.
b. networking and data management technology.
c. data and telecommunications technology.
d. networking and telecommunications technology.
23) Engineers, scientists, or architects, who design new products or services for a firm, belong to
which level of a business hierarchy
a. middle management
b. production workers
c. knowledge workers
d. data workers
24) Which of the following are environmental actors that interact with an organization and its
information systems
a. customers
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b. suppliers
c. regulatory agencies
d. all of the above
25) Output
a. is feedback that has been processed to create meaningful information.
b. is information that is returned to appropriate members of the organization to help them
evaluate the input stage.
c. transfers data to the people who will use it or to the activities for which it will be
used.
d. transfers processed information to the people who will use it or to the activities for which
it will be used.
26) Which main business function is responsible for maintaining employee records
a. sales and marketing
b. human resources
c. finance and accounting
d. manufacturing and production
27) Apple Computer dominates the online legal music sales industry primarily because of a
failure of recording label companies to
a. invest in technology.
b. adopt a new business model.
c. invest in complementary assets.
d. modernize their information value chain.
28) The three activities in an information system that produce the information organizations use
to control operations are
a. information retrieval, research, and analysis.
b. input, output, and feedback.
c. input, processing, and output.
d. data analysis, processing, and feedback.
29) Maintaining the organization's financial records is a central purpose of which main business
function
a. manufacturing and accounting
b. finance and accounting
c. sales and manufacturing
d. finance and sales
30) An example of a business using information systems for customer and supplier intimacy is
a. Wal-Mart`s RetailLink system.
b. the Mandarin Oriental hotel`s customer-preference tracking system.
c. Verizon`s Web-based digital dashboard.
d. Apple Inc.`s iPod.
31) An example of raw data from a national chain of automobile stores would be
a. an average of 13 Toyotas are sold daily in Kentucky.
b. 30 percent increase in Toyota RAV 4 sales during September in Kentucky.
c. 1 Toyota RAV4 sold March 3, 2008 in Louisville, Kentucky.
d. all of the above.
32) In a hierarchical organization, the upper levels consist of
a. managerial and professional employees.
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IS 3630 Modern Information Systems: MCQ simple banking

b. managerial, professional, and technical employees.
c. professional and operational employees.
d. managerial, professional, and operational employees.
33) Disciplines that contribute to the technical approach to information systems are
a. computer science, engineering, and networking.
b. operations research, management science, and computer science.
c. engineering, utilization management, and computer science.
d. management science, computer science, and engineering.
34) Networking and telecommunications technologies, along with computer hardware, software,
data management technology, and the people required to run and manage them, constitute an
organization's
a. data management environment.
b. networked environment.
c. IT infrastructure.
d. information system.
35) A corporation that funds a political action committee, which in turn promotes and funds a
political candidate who agrees with the values of that corporation, could be seen as investing
in which main category of complementary assets
a. managerial
b. governmental
c. social
d. organizational
36) Dell Computer's use of information systems to improve efficiency and implement "mass
customization" techniques to maintain consistent profitability and an industry lead illustrates
which business objective
a. improved flexibility
b. improved business practices
c. competitive advantage
d. survival
37) A firm that must invest in new information systems capabilities in order to comply with
federal legislation can be said to be investing to achieve which business objective?
a. customer intimacy
b. operational excellence
c. survival
d. improved reporting
38) The three principal levels within a business organization hierarchy are
a. senior management, operational management, and service workers.
b. senior management, middle management, and operational management.
c. senior management, operational management, and information systems.
d. senior management, middle management, and service workers.
39) A grocery store checkout cash register with a connection to a network is an example of a(n)
a. intelligent system
b. functional area information system
c. decision support system
d. transaction processing system
e. electronic commerce system
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40) Toyota's automotive electronics systems and FedEx's Web site were not developed solely
because managers in these organizations wanted to do things faster or because they wanted to
have the latest, greatest technology. These organizations developed these systems to help
gain or sustain competitive advantage. The choices made in developing the systems at both
Toyota and FedEx were ________ in their intent.
a. operational
b. functional
c. strategic
d. departmental
e. tactical
41) Which of the following is part of an IS personnel's business knowledge and skills?
a. information gathering and synthesis
b. technological communication and presentation
c. systems development life cycle
d. problem identification and solution formulation
e. virtualization
42) Which of the following IS personnel is responsible for coding, testing, debugging, and
installing programs?
a. a programmer
b. a systems consultant
c. an IS manager
d. a systems analyst
e. an IS security manager
43) The ________ Act of 1986 made it much more difficult for anyone, including the
government, to eavesdrop on phone conversations.
a. Electronic Communication Modernization
b. Internet Privacy
c. Sarbanes-Oxley
d. GrammLeachBliley
e. Electronic Communications Privacy
44) Which of the following statements is true about online privacy?
a. A vendor cannot track the Web pages you look at.
b. A vendor cannot track what products you examine in detail.
c. A vendor is not capable of knowing the method of payment you choose to use.
d. A vendor is not required by law to respect your privacy.
e. A vendor cannot know where you are having the product delivered.
45) In information systems management, a systems consultant is responsible for ________.
a. analyzing business requirements and selecting information systems that meet those needs
b. coding, testing, debugging, and installing programs
c. auditing information systems for compliance with internal and external standards
d. managing security measures and disaster recovery
e. providing information systems knowledge to external clients
46) The process of connecting separate information systems and data to improve business
processes and decision making is known as ________.
a. database development
b. business intelligence
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c. systems integration
d. application development
e. collaboration systems
47) Microsoft's Exchange/Outlook and Lotus Notes, provide people with e-mail, automated
calendaring, and online, threaded discussions, enabling close contact with others, regardless
of their location. Identify this type of information system. These are examples of ________.
a. collaboration systems
b. office automation systems
c. data mining and visualization systems
d. functional area information systems
e. transaction processing systems
48) Information property focuses on ________.
a. who owns information about individuals and how information can be sold and exchanged
b. information that has been encrypted by the owner to make it unaccessible to others
c. information an individual should or should not have to reveal to others in the
workplace
d. information a person or organization has the right to obtain about others
e. the authenticity of information as well as responsibility for informational errors that harm
people
49) Information accessibility focuses on ________.
a. defining what information a person or organization has the right to obtain about others
b. identifying who is responsible for informational errors that harm people
c. information that has been encrypted by the owner to make it unaccessible to others
d. who owns information about individuals and how information can be sold and exchanged
e. what information an individual should have to reveal to others in the workplace
50) Which of the following is part of an IS personnel's technical knowledge and skills?
a. systems analysis and design
b. integrating subsystems and systems
c. alternative development methodologies
d. network operating systems
e. technological communication and presentation
51) Which of the following statements is true about data?
a. It can be defined as a representation of reality.
b. It is the ability to understand information.
c. It has no meaning in and of itself.
d. It is the ability to make decisions or predictions based on information.
e. It organizes or manipulates information to make it suitable for a given task.
52) SlamBook is a social networking site which currently has around 2,000,000 users. The
company has always valued its users' privacy and has taken extensive measures to safeguard
it. However, SlamBook has recently faced severe customer backlash regarding privacy issues
associated with one of its applications. Which of the following statements would best explain
the apparent discrepancy above?
a. Recently, the government introduced stringent privacy regulations for Internet firms.
b. The application did not have any provisions that restricted minors from using the
application.

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c. MyPlace, SlamBook`s closest competitor, had seen great success with a similar
application and an opt-out system.
d. Launching opt-out applications instead of opt-in applications is an industry trend.
e. The application was an opt-out system, whereby all users were enrolled by default.
53) Which of the following is part of an IS personnel's systems knowledge and skills?
a. hardware platforms
b. business processes
c. alternative development methodologies
d. cabling and network interface cards
e. application software
54) ________ is concerned with what information an individual should have to reveal to others in
the workplace or through other transactions.
a. Information accessibility
b. Information accuracy
c. Information privacy
d. Information asymmetry
e. Information piracy
55) Which of the following is used to describe the issues and standards of conduct as they pertain
to the use of information systems?
a. virtual ethics
b. social informatics
c. cyber security
d. computer etiquette
e. computer ethics
56) Which of the following can be cited as an example of a digital divide?
a. Unlike Joey, Ryan has access to more books and good advice because he studies in a
better school.
b. Unlike Ben, Claudia possesses superior analytical skills, which makes her better at
mathematics.
c. Kevin is more successful than Vincent because of his people skills.
d. Lora has access to more information than Frank because she knows how to operate a
computer.
e. Trisha is wealthier than Neal because her father is a successful businessman.
57) Which of the following statements is true about information?
a. It has no meaning in and of itself.
b. It organizes or manipulates knowledge to make it suitable for a given task.
c. It is raw materialrecorded, unformatted words and numbers.
d. It is a representation of reality.
e. It is the ability to make predictions based on data.
58) Which of the following IS personnel is responsible for the maintenance of information
systems?
a. a systems analyst
b. a database administrator
c. a programmer
d. an IS security manager
e. a systems consultant
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59) ________ is concerned with ensuring the authenticity and fidelity of information as well as
with identifying who is responsible for informational errors that harm people.
a. Information privacy
b. Information accuracy
c. Information accessibility
d. Information property
e. Information protection
60) Which of the following can be cited as an example of a supply chain management system?
a. procurement planning
b. market analysis
c. knowledge portal
d. sales force automation
e. product demand forecasting system
61) Identify the purpose of a transaction processing system used in organizations.
a. to support the activities within a specific functional area of the firm
b. to handle day-to-day business event data at the operational level of the organization
c. to support interaction between the firm and its customers
d. to support the coordination of suppliers, product or service production, and distribution
e. to enable customers to buy goods and services from a firm`s Web site
62) The gap between those individuals in our society who are computer literate and have access
to information resources like the Internet and those who do not is referred to as the
________.
a. horizontal disparity
b. digital divide
c. electronic gap
d. generation gap
e. knowledge divide
63) A global project called One Laptop per Child is attempting to distribute low-cost laptop
computers to children in developing countries around the world in an attempt to shrink the
________.
a. digital divide
b. electronic gap
c. power distance
d. horizontal disparity
e. knowledge gap
64) Which of the following statements is true about today's service-oriented IS personnel?
a. They modify systems at a moment`s notice to meet customer needs quickly and
effectively.
b. They patiently wait for customers to come in with systems complaints.
c. They believe that they own and control the computing resources.
d. They give reasons why customers` ideas cannot or will not work.
e. They believe they should tell users what they can and cannot do with the computing
resources.
65) WorldTravel (www.worldtravel.com ) is a travel Web site that provides detailed information
about the different places that tourists can visit across the globe. Additionally, it also helps

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visitors to book tickets and hotels in these destinations. Which of the following, if true,
would most assure the customers about their online privacy
a. WorldTravel, when collecting personal information, explicitly states the purpose of the
information and that it will not be used for anything else.
b. WorldTravel informs its members that it is following the best practices in the industry.
c. WorldTravel, when collecting personal information, explicitly tells all its customers that
the information collected will be protected by a third party who specializes in this
domain.
d. WorldTravel decides not to send any spam mails to any of its members.
e. WorldTravel, when collecting personal information, explicitly tells all its customers
that the information collected is protected under the Electronic Communications
Privacy Act.
66) The purpose of a(n) ________ is to support and integrate all facets of the business, including
planning, manufacturing, sales, marketing, and so on.
a. intelligent system
b. functional area information system
c. electronic commerce system
d. enterprise resource planning system
e. management information system
67) Which of the following steps should be taken to ensure ones privacy online?
a. Avoid Web sites that are monitored by independent organizations.
b. Visit Web sites anonymously.
c. Adjust your Web browser settings to save cookies.
d. Ensure you receive a confirmation e-mail whenever you buy products online.
e. Maintain only one e-mail account and use it when making online purchases.
68) The digital divide is one of the major ethical challenges facing society today when you
consider the strong linkage between computer literacy and a person's ability to compete in
the information age. Which of the following statements, if true, would widen the digital
divide
a. According to Moore`s law, the cost of computing is expected to decrease drastically over
the next few years.
b. Companies like Microsoft and Berkshire Hathaway have invested billions of dollars in
research on information technology.
c. IT firms are concerned about and are conducting extensive research on the obsolescence
of technology.
d. The increase in the need for innovative technology has increased the cost of
research, which has resulted in an increase in the cost of computing.
e. Certain IT firms are conducting exclusive research to make the technology product lifecycle longer.
69) Information about "who am I, and where do I live?" is an example of ________.
a. behavioral data
b. geographic data
c. psychographic data
d. demographic data
e. attitudinal data

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70) Which of the following IS personnel is responsible for strategic planning and IS use
throughout a firm?
a. the chief information officer
b. the IS security manager
c. the IS manager
d. the Webmaster
e. the IS auditor
71) Identify the purpose of an office automation system.
a. to processes day-to-day business event data at the operational level of the organization
b. to provide access to databases in order to support quantitative decision making
c. to support a wide range of predefined day-to-day activities of individuals and small
groups
d. to support interaction between the firm and its customers
e. to support the activities within a specific functional area of the firm
72) The purpose of an intelligent system is to ________.
a. enable people to communicate, collaborate, and coordinate with each other
b. create, store, analyze, and manage spatial data
c. emulate or enhance human capabilities
d. support the coordination of suppliers, product or service production, and distribution
e. produce detailed information to help manage a firm
73) Who owns the computerized information that is stored in thousands of databases by retailers,
credit card companies, and marketing research companies?
a. the government
b. the Chief Information Officer
c. the firm that maintains the database
d. the customers themselves
e. the company`s IT department
74) What type of commerce is enabled by technology
a. Path-to-profitability
b. E-commerce
c. EBuy
d. Internet
75) What type of commerce occurs when a business sells its products over the Internet to other
businesses
a. B2B
b. B2C
c. C2B
d. Enterprise commerce
76) What is term used when the government employs technology to deal with citizens,
businesses, and other government agencies
a. G2BC
b. Web
c. consumer
d. E-government
77) What term refers to an organization's ability to tailor its products and services to its
customers
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a. Specialization
b. Target commerce or T-commerce
c. Mass customization
d. Adaption
78) What term refers to the small web page that opens automatically with an ad when you visit
some web sites
a. Marketing page
b. I-ad
c. Affiliate ad
d. Pop-up ad
79) When two companies are linked together by computers and they send business transactions
through these computers, they are probably using _____.
a. Digital wallets
b. Electronic data interchange
c. B2C
d. Smart cards
80) What type of technology scrambles the contents of files sent via the Internet
a. Encryption
b. Secured data interchange
c. Cryptogram
d. Regulated code
81) What type of Web technology creates a secure and private connection between two
computers
a. Secure socket layers
b. Encryption
c. Internet-locked connections
d. Sheltered web sites
82) What term refers to your ability to connect to the internet and your company from a wireless
device
a. Net services
b. Push technology
c. Pull technology
d. Mobile computing
83) To the __________, physical location does not matter because the Internet allows anyone to
link to any Web site no matter where in the world that site might be
a. bricks-and-clicks retailer
b. e-tailer
c. bricks-and-mortar retailer
d. B-to-G business
e. location always matters
84) What is true regarding competitive advantage.
a. companies must have it to survive
b. a high tech approach is necessary to derive it
c. information systems to key to its development
d. it is difficult to sustain
e. none of the above
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85) A competitive advantage derived from __________ is generally considered the best approach
for a company.
a. product placement
b. price
c. marketing
d. improved value chain and/or supply chain efficiency
e. none of the above
86) When the supermarket scans your premier customer card it links you to your purchases and
then uses that information to establish a personal shopping pattern for you. Subsequently, the
supermarket uses that information to target advertising (like coupons and mailers) directly to
you based on your established shopping patterns, a form of one-to-one, __________
marketing.
a. spam-based
b. mass
c. modified
d. e-commerce
e. relationship
87) Purchasing new computers or technologies generally leads to a competitive advantage for a
company.
a. true
b. false
88) Web sites use __________ to compile personal information on their visitors and then use the
information to create customer profiles.
a. cookies
b. transition pages
c. registration forms
d. a and c
e. b and c
89) Digital products, such as software, music, digitized images, and electronic games are a great
fit for consumer focused (B2C) e-commerce because __________.
a. they are always free
b. electronic distribution is more efficient than alternative distribution channels for
digital products
c. digital products are not a good fit for B2C e-commerce
d. they cannot be easily monitored
e. none of the above
90) When measuring the effectiveness on an online advertisement, the __________ is the
percentage of visitors to a page who click on an advertisement.
a. click ratio
b. click rate
c. nielsen rating
d. hit ratio
e. click-through rate
91) __________ is/are used to pay for microtransactions.
a. e-cash
b. digital cash
c. bank accounts
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d. either A or B
e. none of the above
92) __________ are used by consumers to locate the best price for a desired product
a. shopping bots
b. search engines
c. middleware routines
d. worms
e. spam
93) The development of __________ has been more evolutionary than revolutionary.
a. consumer focused e-commerce
b. B2C e-commerce
c. the dot-coms
d. intra-business e-commerce
e. consumer focused start-ups
94) Early business application programs focused on __________.
a. individual processes
b. automating selected manual tasks
c. neither A nor B
d. both A and B
95) Viewing a system (such as an organization) as a set of individual processes leads to
__________.
a. sub-optimization
b. optimization
c. standardization
d. isolation
e. process maximization
96) Islands of automation do not allow for productivity of individual functional groups.
a. true
b. false
97) A __________ is an existing, often relatively inefficient application developed for an old
platform.
a. web application
b. functional application
c. resistant application
d. mission critical
e. legacy application
98) On a(n) __________ architecture, the server does most of the work.
a. fat client
b. island of automation
c. Richard Simmons client
d. thin client
e. web application
99) __________ is the act ferreting out previously unknown patterns and relationships from a set
of data.
a. database management
b. data mining
c. enterprise resource planning
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d. data searching
e. data surfing
100) A(n) __________ is a private corporate network that uses standard Internet protocols and
interfaces.
a. ethernet
b. extranet
c. local area network
d. TCP/IP network
e. intranet
101) A __________ application is one that the company depends upon for its well-being.
a. dynamic
b. static
c. urgent need
d. web based
e. mission critical
102) For a company to obtain competitive advantage it must use a technology/process that is:
a. non-substitutable
b. high tech
c. not easily copied
d. a and c
e. b and c
103) Intra-organizational e-commerce is __________ focused. B2B focuses on improving
information exchanges throughout the __________.
a. supply chain/value chain
b. customer/supply chain
c. value chain/supply chain
d. customer/value chain
104) In an effort to increase inter-organizational information flow, many companies expand
access to corporate intranets to include selected trading partners and customers by creating
a(n) __________.
a. EDI exchange
b. Extranet
c. VPN
d. RAND
e. VAN
105) __________ is the process of planning, implementing, and controlling the flow of goods
and services from point of origin to point of consumption.
a. CRM
b. surplus management
c. transportation
d. logistics
e. none of the above
106) __________ includes software and integration efforts intended to increase customer
satisfaction and loyalty.
a. supply chain management
b. e-procurement
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c. dynamic servicing
d. human services
e. CRM
107) The general premise of __________ is to effectively manage the flow of product,
information, and finances between all trading partners.
a. supply chain management
b. value chain management
c. logistics management
d. e-procurement
e. e-tailing
108) __________ is the electronic transmission of business transaction documents directly
between the computers of trading partners in a standard message format.
a. ERP
b. encapsulation
c. B2B
d. transaction processing
e. none of the above - EDI
109) Which of the following is likely to have the lowest cost of entry?
a. an e-retailer
b. a bricks-and-mortar presence
c. a bricks-and-clicks presence
d. a traditional storefront
e. all are about equal
110) Before the dot-com bubble burst, a proposed B2C venture that could legitimately claim
__________ had relatively little trouble getting startup funding.
a. competitive prices
b. good marketing strategies
c. convenience
d. first mover status
e. all of the above.
111) The ultimate objective of a companys website is to add enough value to achieve
__________, a state in which the customer has a vested interest to stay with the company
because switching to a competitor entails significant switching costs.
a. loyalty
b. integration
c. interconnection
d. lock-in
e. a dependency relationship
112) Consumer interaction, the essence of consumer focused (B2C) e-commerce, is the front
end to __________.
a. the value chain (intra-business e-commerce)
b. the supply chain (B2B e-commerce)
c. neither
d. both
113) __________, the act of modifying a product or service to fit a given users requirements,
is a possible e-commerce source of sustainable competitive advantage.
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a. specialization
b. customization
c. targeting
d. tuning
e. none of the above
114) Intra-business e-commerce is sometimes called __________ e-commerce.
a. B2C
b. B2B
c. C2C
d. B2G
e. none of the above B2E
115) In a client/server application, the __________ logic provides the user interface.
a. business
b. information/data
c. presentation
d. all of the above
e. none of the above
116) We can directly connect information systems with increased firm performance.
a. true
b. false
117) A __________ is operated by a trusted third party that offers bandwidth and other value
added services to facilitate interconnectivity among multiple organizations.
a. virtual private network (VPN)
b. value added network (VAN)
c. both A and B
d. neither A nor B
118) What is the primary responsibility of the Chief Information Officer?
a. manage programmers
b. avoid failed systems
c. set and guide the information systems strategy
d. provide technical expertise
e. know the technical status organizational competitors
119) A(n) __________ is a pseudo private data network that uses public bandwidth in
combination with a tunneling protocol and security procedures.
a. value added network (VAN)
b. intranet
c. virtual private network (VPN)
d. leased line
e. virtual applied network
120) Which of the following forms of connectivity is the least scalable?
a. VAN
b. VPN
c. public bandwidth
d. private leased network
e. the Internet
121) A VPN relies on a special protocol understood only by the VPN software to transmit
packets, a technique called __________.
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a.
b.
c.
d.
e.
122)
a.
b.
c.
d.

encryption
packet switching
tunneling
packet hiding
packet mining
By Electronic Commerce we mean:
Commerce of electronic goods
Commerce which depends on electronics
Commerce which is based on the use of internet
Commerce which is based on transactions using computers connected by
telecommunication network
123) Electronic Data Interchange is necessary in
a. B2C e-Commerce
b. C2C e-Commerce
c. B2B e-Commerce
d. Commerce using internet
124) In B2B e-Commerce
(i) Co-operating Business should give an EDI standard to be used
(ii) Programs must be developed to translate EDI forms to a form accepted by
application program
(iii) Method of transmitting/receiving data should be mutually agreed
(iv) It is essential to use internet
a. i, ii
b. i, ii, iii
c. i, ii, iii, iv
d. ii, iii, iv
125) By security in e-Commerce we mean
(i) Protecting an organizations data resource from unauthorized access
(ii) Preventing disasters from happening
(iii) Authenticating messages received by an organization
(iv) Protecting messages sent on the internet from being read and understood by unauthorized
persons/organizations
a. i, ii
b. ii, iii
c. iii, iv
d. i, iii, iv
126) A firewall is a
a. wall built to prevent fires from damaging a corporate intranet
b. security device deployed at the boundary of a company to prevent unauthorized
physical access
c. security device deployed at the boundary of a corporate intranet to protect it from
unauthorized access
d. device to prevent all accesses from the internet to the corporate intranet
127) In Electronic cash payment
a. a debit card payment system is used

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b. a customer buys several electronic coins which are digitally signed by coin issuing
bank
c. a credit card payment system is used
d. RSA cryptography is used in the transactions
128) In Electronic cash payment
(i) a customer withdraws coins in various denominations signed by the bank
(ii) the bank has a database of issued coins
(iii) the bank has a database of spent coins
(iv) the bank cannot trace a customer
a. i, ii
b. i, ii, iii
c. i, ii, iii, iv
d. ii, iii, iv
129) Which types of organisational knowledge are a source of competitive advantage
a. Explicit knowledge which is classified and formalised in a planned and systematic way.
b. Personal knowledge which is hard to communicate and formalize
c. Customer databases, market research reports, management reports
d. Collective and shared experience accumulated through systems, routines and activities of
sharing across the organisation
130) The value chain attempts to identify those activities which add value to
a. The organisation's stakeholders.
b. The senior strategic managers in the organisation.
c. The organisation's shareholders.
d. The customer or final user.
131) What are core competences
a. Resources which critically underpin competitive advantage and that others cannot obtain.
b. Activities and processes needed to meet customers' minimum requirements and therefore
to continue to exist.
c. Key skills required for success in a particular business.
d. Activities that underpin competitive advantage and are difficult for competitors to imitate
or obtain
e. Data about "what are my tastes and preferences?" is an example of demographic data.
132) Internetworking is the process of connecting host computers and their networks together
to form a larger network like the Internet.
a. true
b. false
133) IS personnel with service mentality believe that the customers own the technology and
the information and that the technology and information are there for the customers, not for
the systems personnel.
a. true
b. false
134) Unlike Luddites, neo-Luddites do not oppose information systems.
a. true
b. false
135) offered far stronger support for voice mail than it did for e-mail communications.
a. true
b. false

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136) According to futurist Alvin Toffler, the "first wave" was a civilization based on
agriculture and handwork.
a. true
b. false
137) manages Nike's warehouse and handles product packing and shipping as well as payment
collection from customers through a process called in-forming.
a. true
b. false
138) Nearshoring is the reversal of off shoring.
a. true
b. false
139) According to Thomas L. Friedman, power from domesticated horses, wind, and, in the
late stages, steam, were the primary drivers of Globalization 2.0.
a. true
b. false
140) When you make Web purchases, vendors are not required by law to respect your privacy.
a. true
b. false
141) Software refers to a group of two or more computer systems linked together with
communications equipment.
a. true
b. false
142) Outsourcing has seen a huge increase because of the decrease in telecommunication
costs.
a. true
b. false
143) The technical area of competency is the most easy to maintain because the popularity of
individual technologies is so huge.
a. true
b. false
144) Work flow software is a variety of software applications that allow for software-tosoftware interaction.
a. true
b. false
145) Technology use can be strategic and can be a powerful enabler of competitive advantage.
a. true
b. false
146) Work flow software is a variety of software applications that allow for software-tosoftware interaction.
a. true
b. false
147) Office automation systems such as Microsoft Office and the OpenOffice.org Productivity
Suite provide word processing, spreadsheet, and other personal productivity tools, enabling
knowledge workers to accomplish their tasks.
a. true
b. false
148) Knowledge is the ability to understand information, form opinions, and make decisions or
predictions based on the information.
a. true
b. false
149) The purpose of a knowledge management system is to create, store, analyze, and manage
spatial data.
a. true
b. false
150)

In 1959, Alvin Toffler coined the term knowledge worker.

a. true
b. false
151) Services offered by Google, such as Gmail, Google docs, or Google Calendar are
examples of cloud computing.
a. true
b. false
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152)

Data about "what are my tastes and preferences?" is an example of demographic data.
a. true
b. false
153) IS personnel with service mentality put up roadblocks to customers' new systems ideas
and give reasons that the new ideas cannot or will not work.
a. true
b. false
154) Cloud computing can contribute to an increase in outsourcing.
a. true
b. false
155) Information systems that monitor the elementary activities and transactions of the
organizations are:
a. management-level systems.
b. operational-level systems.
c. knowledge-level systems.
d. strategic-level systems.
156) Projections and responses to queries are information output characteristics associated
with a(n):
a. DSS
b. MIS
c. ESS
d. TPS
157) Summary transaction data, high-volume data, and simple models are information inputs
characteristic of a(n):
a. DSS
b. MIS
c. ESS
d. TPS
158) Which of the following individuals typically have less formal, advanced educational
degrees and tend to process rather than create information?
a. knowledge workers
b. executives
c. systems analysts
d. data workers
159) Management information systems usually:
a. serve managers interested in weekly, monthly, and yearly results, not day-to-day
activities.
b. help managers make decisions that are unique, rapidly changing, and not easily
specified in advance.
c. provide managers with a generalized computing and telecommunications capacity
that can be applied to a changing array of problems.
d. Perform and record the daily routine transactions necessary to the conduct of
business.
160) Decision support systems usually:
a. serve managers interested in weekly, monthly, and yearly results, not day-to-day
activities.
b. help managers make decisions that are unique, rapidly changing, and not easily
specified in advance.

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c. provide managers with a generalized computing and telecommunications capacity
that can be applied to a changing array of problems.
d. perform and record the daily routine transactions necessary to the conduct of
business.
161) Identifying customers and markets using data on demographics, markets, consumer
behavior, and trends is an example of a(n):
a. operational-level sales and marketing information system.
b. knowledge-level sales and marketing information system.
c. management-level sales and marketing information system.
d. strategic-level sales and marketing information system.
162) Deciding where to locate new production facilities is a(n) example of a manufacturing
and production information system operating at the:
a. operational level.
b. management level.
c. knowledge level.
d. strategic level.
163) Preparing short-term budgets is an example of a finance and accounting information
system operating at the:
a. operational level.
b. management level.
c. knowledge level.
d. strategic level.
164) Tracking employee training, skills, and performance appraisals is an example of a human
resource information system operating at the:
a. operational level.
b. management level.
c. knowledge level.
d. strategic level.
165) Assembling a product, identifying customers and hiring employees are:
a. transactions.
b. Phases
c. Business processes
d. Business functions
166) Which of the following is a network of facilities for procuring materials, transforming
raw materials into intermediate and finished products, and distributing the finished products
to customers?
a. production chain
b. primary chain
c. supply chain
d. distribution chain
167) Information systems can facilitate supply chain management by
a. tracking the status of orders.
b. rapidly communicating orders.
c. providing product specifications.
d. doing all of the above.
168) Enterprise systems support:
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a. manufacturing processes.
b. financial and accounting processes.
c. human resource processes.
d. all of the above.
169) Which of the following uses a vertical industrial network
a. Coca-Cola
b. Ford
c. General Motors
d. OASIS
170) Advantages of B2C commerce are
(i) Business gets a wide reach to customers
(ii) Payment for services easy
(iii)Shop can be open 24 hours a day seven days a week
(iv)Privacy of transaction always maintained
a. i and ii
b. ii and iii
c. i and iii
d. iii and iv

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