Test Bank For Using MIS, 13th Edition By David M. Kroenke Randall J Boyle

Exam Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) ________ states that the number of transistors per square inch on an integrated chip doubles every 18 months.

A) Faraday's Law B) Metcalfe's Law C) Newton's Law D) Moore's Law E) Nielsen's Law

1)

2) Which of the following is a critical characteristic of good information?

A) ease of creation B) inexpensive C) abundance of details D) quantity E) accuracy

2)

3) Which of the following pairs of components constitutes the human side of information systems?

A) software and procedures B) software and people C) instructions and code D) people and procedures E) hardware and people

3)

4) The hardware components of an information system will act as a(n) ________.

A) actor on the human side B) actor on the computer side C) bridge between the computer side and the human side D) instruction on the computer side E) functional anchor on the human side

4)

5) Which of the following ratios has fallen as a result of Moore's Law? A) debt/equity B) profit/loss C) price/earnings D) price/performance E) demand/supply

5)

6) Because of Moore's Law, the ________ of data processing is approaching zero.

A) speed B) power C) applications D) cost E) use

6)

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7) Which of the following is an example of a low-tech information system?

A) a customer support system that keeps track of product issues B) an enterprise data loss prevention system that monitors the flow of data over a network C) a file of email addresses stored in an email program D) an inventory tracking system that stores millions of records and produces reports every 24 hours E) a decision support system that analyzes multiple variables

7)

8) ________ is the single most important skill for effective collaboration.

A) Fearlessness B) Being nice C) Experimentation D) Being able to connect the inputs with the outputs E) Giving and receiving feedback

8)

9) The ________ component of the five-component framework of an information system includes individuals who maintain the data and support the networks of computers.

A) networking B) storage C) procedural D) data E) people

9)

10) ________ is the activity of two or more people working together to achieve a common goal, result, or work product.

A) Experimentation B) Abstract reasoning C) Collaboration D) Systems thinking E) Competition

10)

11) ________ is defined as making a reasoned analysis of an opportunity, envisioning potential solutions, evaluating those possibilities, and developing the most promising ones, consistent with the resources one has.

A) Cognition B) Troubleshooting C) Abstract reasoning D) Experimentation E) Problem-solving

11)

12) The CEO of a large company asks the sales manager to report the sales figures of the previous quarter. The manager immediately sends her the list of products sold in the previous quarter. These details do NOT qualify as good information because they are ________.

A) not timely B) too narrow in scope C) not relevant D) too large E) too expensive

12)

2

13) Caroline asks her secretary to send information on the meetings that she needs to attend next month. Her secretary, Joanne, provides her with the details immediately, but leaves out certain additional details that are irrelevant to Caroline's requirements. Which of the following statements is TRUE about this scenario?

A) The information that Joanne provided was partly good, as it was timely but inaccurate.

B) Joanne provided adequate and timely information, but the information was of no value to Caroline.

C) The information that Caroline obtained through Joanne was not timely or worth its cost.

D) The information that Caroline obtained through Joanne was not accurate.

E) The information that Joanne gave was accurate and sufficient for Caroline's purpose.

13)

14) ________ states that network connection speeds for high-end users will increase by 50 percent per year.

A) Nielsen's Law B) Kryder's Law C) Bell's Law D) Metcalfe's Law E) Moore's Law

14)

15) Silway Travels organizes tours to a number of cities in Illinois. The manager of the company examines a spreadsheet which is an annual record of airfares to different cities from Chicago. The contents of the spreadsheet will be used to determine the difference in peak season and off-season airfares. The spreadsheet, in this case, represents ________.

A) information B) a system C) data D) an analysis E) a survey

15)

16) A large retailer loses millions of customer records in a major data breach. They must develop and implement a new system which includes new hardware, applications, and storage. Which of the following actions will be most difficult to perform when implementing the new information system?

A) training the employees to use and manage the new system B) installing new transaction processing hardware C) writing the programs to create the software D) changing the structure of existing databases that reflect supplier and customer data E) upgrading the computer systems used by the retail chain

16)

17) In the context of information systems, which of the following statements is TRUE of data characteristics?

A) Larger data sets yield more accurate information.

B) Data should be relevant to the context, not necessarily to the subject.

C) Data generated should be in excess of what is required.

D) Freely available data is always accurate and timely.

E) An appropriate relationship should exist between the cost of data and its value.

17)

3

18) Lindsay is an analyst at a large power company. She creates a custom spreadsheet showing how cold weather might affect the company's profitability. This shows her ________ skills.

A) risk ordering B) systems thinking C) problem-solving D) abstract reasoning E) experimentation

18)

19) Drudgen Fitness Inc. is a fitness equipment provider that markets its products through a chain of retail outlets in four states. As part of its expansion strategy, the company decides to open outlets in four more states and decides to revise its existing business processes. According to the five-component model of information systems, which of the following processes will be the least disruptive to the organization?

A) developing new CRM software for the existing and new outlets B) collecting demographic data from the new markets C) changing the sales, reporting, and compensation procedures D) relocating existing employees and hiring new employees E) buying and installing new computers in the new outlets

19)

20) BigBank uses a custom customer management system to manage all of its interactions with retail clients. This system is an ________ of the company's information system.

A) actor on the human side B) instruction on the computer side C) instruction on the human side D) actor on the computer side E) instruction for the hardware

20)

21) Dallas is an analyst at an online retailer. He is great at creating representative diagrams showing the relationships between customer purchases, billing, and shipment. This indicates that he has ________ skills.

A) abstract reasoning B) systems thinking C) experimental D) collaborative E) spatial intelligence

21)

22) Which of the following is considered as information rather than mere data?

A) the price of a company's shares on a given day B) the return on investment of an advertising campaign C) the total number of students in a school D) a list of property prices in a neighborhood E) the weight of a car

22)

23) Accuracy is ________ because business professionals must be able to rely on the results of their information systems.

A) an analysis B) data C) crucial D) information E) knowledge

23)

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24) It is generally more difficult to make changes to the ________ of an information system than to the database itself.

A) hardware B) memory C) software D) programs E) procedures

24)

25) Noel creates a table listing the number of students in his biology class, their names, age, and phone numbers. His table is an example of the ________ component of an information system.

A) information B) process C) program D) data E) hardware

25)

26) A manager will essentially require ________ skills to test ideas clearly on a small scale, before taking bigger risks or committing significant resources to a larger project.

A) social B) collaboration C) systems thinking D) experimentation E) interpersonal

26)

27) Which of the following is the least critical aspect of good information?

A) timeliness of data B) relevance of data C) sufficiency of data D) additional data E) data accuracy

27)

28) Which of the following statements is TRUE of good information?

A) Good information should go well beyond the scope of the purpose for which it is generated.

B) Good information is only received from sources that provide data for free.

C) Information should be relevant to the subject, not necessarily to the context.

D) Good information comes from large data sets.

E) Good information should be based on correct and complete data.

28)

29) Zach follows the instructions that show him how to create a custom Web site in his school's learning management system. These steps that he follows are examples of the ________ component of an information system.

A) software B) data C) hardware D) procedure E) memory

29)

30) Even if you are not a programmer or a database designer, you still should take a(n) ________ in the systems development process.

A) matter of fact attitude B) positive outlook C) your opinion D) interest E) active role

30)

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31) After making minor changes to a team report, Jeff felt like he had done enough work on the project.

When he was asked to contribute more, he got offended and quit responding to requests from some team members. Jeff's inability to receive critical feedback indicates a lack of ________ skills.

A) systems thinking B) experimentation C) ideation D) collaboration E) abstract reasoning

31)

32) The method used to start a program is part of the ________ component in the five-component framework.

A) people B) data C) software D) hardware E) procedures

32)

33) The ________ component in the five-component model of information systems is considered a bridge that connects the computer side and the human side.

A) hardware B) procedure C) virtual D) data E) software

33)

34) John Carter, the CEO of Carter Steels, is concerned about the sudden rise in employee attrition in his organization. He asks Walter, the human resources manager, to provide him with the last quarter's report showing the rate of attrition. Walter, however, sends the salary details of the new hires for the last quarter. This report is of no use to Carter as it is ________.

A) miscalculated B) irrelevant C) inaccurate D) uncleaned E) not timely

34)

35) Sandra is a production manager at a soda manufacturing and bottling plant. One of her duties is to create a monthly inventory report based on the list of material received from the supplier on delivery. Sandra's report for the previous month, however, turned out to be invalid as the supplier provided an erroneous list. In this scenario, her report cannot be considered good information as it was lacking in ________.

A) method B) effectiveness C) quantity D) accuracy E) content

35)

36) Which of the following statements is TRUE of business users who administer the development of information systems?

A) They should take an active role in the system's development.

B) When the system fails, they must refrain from performing tasks related to system recovery.

C) They are skilled programmers.

D) It is mandatory that they hold a degree in database management.

E) They should refrain from specifying the system's requirements.

36)

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37) Which of the following is categorized as a nonroutine cognitive skill?

A) systems thinking B) tax accounting C) marketing knowledge D) symbolic thinking E) data entry

37)

38) Which of the following best describes data?

A) the ability to use knowledge B) knowledge derived from facts or figures C) recorded facts or figures D) information presented in a meaningful context E) processed information

38)

39) In the five-component model, the process of automation is a process of moving work from ________.

A) the human side to the computer side B) processing to storage C) processes to procedures D) the digital mode to the analog mode E) procedures to people

39)

40) Google's Project Loon is a major effort to ________.

A) facilitate the use of Internet on submarines, while they are submerged B) decrease the size of storage devices, while increasing their capacity C) promote the use of virtual machines, that operate on voice command D) bring Internet access to everyone using a network of inflated balloons E) reduce the rate of decay in magnetic disks

40)

41) A furniture manufacturer keeps details of its current inventory including weight, quantity, and price. These details can be called ________.

A) knowledge B) data C) an analysis D) information E) an assessment

41)

42) In 1972, computer scientist ________ recognized that digital devices would change the world as they evolved and became widely used.

A) Robert Metcalfe B) Gordon Bell C) Sam Flynn D) Jakob Nielsen E) Gordon Moore

42)

43) Which of the following is a common description of information?

A) collection of unprocessed data B) knowledge derived from data C) unbiased, unrelated data D) list of recorded facts or figures E) an array of related variables

43)

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44) Which of the following is an example of systems thinking?

A) Testing a new product before presenting it to management.

B) Looking at a can of beans in the grocery store and connecting it to U.S. immigration.

C) Providing and receiving critical feedback.

D) Working with colleagues in other countries.

E) Creating a model of how customers are created.

44)

45) Which of the following would be the most disruptive to an organization when implementing an information system?

A) creating new databases B) installing new hardware components C) developing new programs D) setting up online data backups E) changing reporting relationships

45)

46) The marketing director asks James to bring her the sales data from the last quarter; however, he misunderstood and brought her sales data from 2010. The information is not useful because it is not ________.

A) worth the cost B) necessary C) timely D) crucial E) knowledge

46)

47) Will decides to gift his wife a house for their 10th wedding anniversary. He contacts his real estate agent about a specific house that he wants to buy. The realtor assures him that he will contact the owners immediately to find out the asking price. The agent, however, informs Will about the price two months after the anniversary. The information provided by the agent is most likely to be useless because it lacked ________.

A) precision B) accuracy C) relevance D) sufficiency E) timeliness

47)

48) ________ states the storage density on magnetic disks is increasing at an exponential rate.

A) Moore's Law B) Nielsen's Law C) Metcalfe's Law D) Faraday's Law E) Kryder's Law

48)

49) According to Moore's Law, the ________.

A) number of transistors per square inch on an integrated chip doubles every 18 months B) price of an integrated chip reduces once in 18 months C) rate of innovation increases exponentially D) performance of each transistor on a square inch of an integrated chip doubles every year E) density of a transistor decreases every year

49)

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50) Which of the following terms is described as processed data or data presented in a meaningful context?

A) information B) illustrations C) questionnaires D) forms E) scenarios

50)

51) Which of the following is an example of computer hardware?

A) a monitor B) an operating system C) a browser D) a variable E) a spreadsheet

51)

52) All of the following are examples of ancillary functions you may be asked to do in your department as a user of information systems (IS) except ________.

A) Create a database B) Employ the system C) Protect the security of the system D) Back up data E) Perform tasks while the system is down.

52)

53) You cannot increase your basic IQ, but you can increase the quality of your ________.

A) procedures B) habits C) thinking D) IS system E) life

53)

54) Which of the following pairs of components constitutes the computer side of information systems?

A) data and memory B) software and data C) hardware and software D) people and procedures E) data and hardware

54)

55) ________ skills determine the ability to conceive information from data.

A) Experimentation B) Cognitive C) Abstract reasoning D) Spatial E) Symbolic thinking

55)

56) ________ states that the value of a network is equal to the square of the number of users connected to it.

A) Moore's Law B) Flynn's Law C) Bell's Law D) Nielsen's Law E) Metcalfe's Law

56)

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57) Which of the following components of an information system is the easiest to change and results in the least amount of organizational disruption?

A) database B) protocols C) software D) procedures E) hardware

57)

58) ________ is the ability to model the components of a system, to connect the inputs and outputs among those components into a sensible whole that reflects the structure and dynamics of the phenomenon observed.

A) Experimentation B) Function modeling C) Abstract reasoning D) Collaboration E) Systems thinking

58)

59) As you go higher in management the more data you will be given, but your time will be limited so you will have to ________ some of the data.

A) sort B) manipulate C) add to D) take to look over E) ignore

59)

60) A primary metric for social media companies is ________.

A) the number of monthly active users B) the total number of users C) revenue D) how much it costs the company to maintain social media connections E) the number of ads shown to users

60)

61) Cami is the marketing manager for a regional furniture maker. She closely monitors the impact of each marketing campaign on overall sales. She routinely tries novel promotional offers to reach first-time customers. Which of the following skills does Cami exhibit?

A) experimentation B) troubleshooting C) abstract reasoning D) systems thinking E) collaboration

61)

62) According to Bell's Law, ________ will evolve so quickly they will enable new platforms every 10 years.

A) systems thinking B) technology companies C) human interactions D) digital devices E) television

62)

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63) In the five-component model of information systems, which of the following component combinations are considered the actors?

A) software and hardware B) data and procedure C) hardware and people D) information and software E) procedure and people

63)

64) According to the five-component model of information systems, the ________ component provides instructions for the people who use information systems.

A) procedure B) data C) storage D) hardware E) software

64)

65) The mismatch between the high level of tech skills demanded by employers and the low level of tech skills held by employees is called ________.

A) the digital divide B) under demand training C) the technology skills gap D) systems thinking E) social re-engineering.

65)

66) ________ is(are) most likely to be outsourced to the lowest bidder.

A) Abstract reasoning skill B) Ability to experiment C) Systems thinking D) Routine skills E) Ability to collaborate

66)

67) Robert is a strategic planner for a consulting firm. He receives countless reports for daily analysis, but he avoids being inundated with information by selecting only the few reports that actually serve his purpose. Which principle of data characterization is Robert following?

A) Data that arrives after a prolonged period of time is of the highest quality.

B) Information needs to be relevant to the subject, not necessarily to the context.

C) Collecting as much data as possible is always preferable.

D) Information should be just barely sufficient for its purpose.

E) Freely available data is always accurate and timely.

67)

68) Kevin is the manager over the southern part of the country. The administrative assistant provided him a report for the northern part of the country. Kevin thanked his assistant but noted the data was ________ because he only requested the report for his region.

A) not accurate B) not sufficient C) not relevant D) created too early E) not worth the cost

68)

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69) Which of the following statements is TRUE about the changes and developments foreseen by the year 2031?

A) Mainframes will overtake servers.

B) Smartphones may fade away.

C) Mobile devices would have to be charged multiple times a day.

D) Desktop and portable computers will increase in popularity.

E) Processing image data would be difficult.

69)

70) As a business professional, what is one of the reasons you should be involved in information systems (IS) development?

A) To understand the business requirements.

B) Information technology professionals know exactly what the business needs.

C) Because you are in upper management and must decide all of the information technology requirements.

D) You have to know what to do in case the system fails.

E) You do not have to be involved.

70)

71) Word and WordPerfect are examples of the ________ component of an information system.

A) tangible B) software C) physical D) virtual E) hardware

71)

72) The storage disks in a computer are an example of the ________ component of information systems.

A) software B) hardware C) bootable D) virtual E) intangible

72)

73) The five-component framework can be used when assessing the scope of ________.

A) life B) new systems C) organization disruption D) habits E) hiring new people

73)

74) Abstract reasoning is the ability to ________.

A) identify the crux of an argument B) develop ideas and plans with others when performing tasks C) provide and receive critical feedback D) act quickly on a problem E) make and manipulate models

74)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

75) In the year 2031, you may be able to turn off your smart bulbs by pointing at them.

75)

76) The hottest jobs are found in marketing companies.

76)

77) The statement that the average computer network architect makes $98,430, is information.

77)

78) Bell's Law states that a new computer class forms roughly each decade establishing a new industry.

78)

79) According to The U.S. Bureau of Labor Statistics, the demand for information systems and business jobs are low and future wage growth appears stagnant.

79)

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80) Data becomes information when it is presented in a meaningful context.

80)

81) Despite the rapid growth of technology, digital devices fail to impact the industry.

81)

82) The lower the amount of work to be moved from the human side to the computer side of an information system, the higher is the complexity of that system.

82)

83) Information systems should be subject to the same financial analyses other assets are subjected.

83)

84) According to the five-component model of information systems, the data and software components of information systems are capable of performing actions.

84)

85) Bryce, a floor manager at an industrial plant, works well with all of his line employees. Bryce's ability to collaborate is a routine skill.

85)

86) Information systems exist to help people who work in an organization to achieve the strategies of that business.

86)

87) In the five-component model of an information system, data is the bridge between the computer and the human sides.

87)

88) Ordering additional hardware creates the least amount of organizational disruption compared to changes in the four components of an information system.

88)

89) Data is worth its cost when an appropriate relationship exists between the cost of data and its value.

89)

90) Obtaining or developing new programs is more difficult than ordering additional hardware.

90)

91) A good information system is one that provides the users with more information than what is required.

91)

92) Social networking has all the components in the Five-component framework.

92)

93) According to the five-component framework, the five components of an information system are present in every information system.

93)

94) Changing the structure of existing databases causes more organizational disruption than changing working procedures.

94)

95) It is only humans that produce information.

95)

96) Data is free.

96)

97) Because you can determine if a graph is useful information further proves that you are the most important part of the five-component model.

97)

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98) According to the five-component model of an information system, software is the most important component of an information system.

98)

99) Gordon Moore was the inventor of Ethernet.

99)

100) In the five-component model of an information system, hardware and software are part of the human side.

100)

101) The Information Age is a period in history where the production, distribution, and control of information is the primary driver of the economy.

101)

102) The five-component framework applies to simple and complex information systems.

102)

103) Information systems are created for the sheer joy of exploring new technologies.

103)

104) Kryder's Law states that the storage density on magnetic disks is increasing at an exponential rate.

104)

105) A person's strong abstract reasoning skills won't be able to easily construct models.

105)

106) By 2031, your data will be safer and more private.

106)

107) The Digital Revolution was the conversion from mechanical and analog devices to digital devices.

107)

108) Changing personnel responsibilities to suit an information system is more disruptive to an organization than ordering additional hardware for the information system.

108)

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

109) List and briefly explain the five-component model of an information system with examples.

110) Explain the four nonroutine cognitive skills that are key to a successful career today.

111) Discuss the common definitions of information.

112) Why does the author feel this course is the most important course in the business school?

113) What job prospects are available for professionals who know how to use information systems (ISs)?

114) What are some potential downsides of advances in technology in the future?

115) What is the difference between information systems (IS) and information technology (IT)?

116) Explain the concept of "just barely sufficient" data.

117) Explain why data accuracy is crucial to the success of an information system.

118) Discuss the Digital Revolution.

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119) Define the terms system, information system, and management information system.

120) What are the five characteristics of good data?

121) List the three key elements of management information systems.

122) Explain how the five components of an information system are arranged in terms of ease of change and organizational disruption.

123) Explain the relation between data and information.

124) Which is the most important component of an information system? Why? 125) State Nielsen's Law. What is the implication of Nielsen's Law for managers?

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Answer Key Testname: C1

1) D 2) E 3) D 4) B 5) D 6) D 7) C 8) E 9) E 10) C 11) D 12) C 13) E 14) A 15) C 16) A 17) E 18) B 19) E 20) B 21) A 22) B 23) C 24) E 25) D 26) D 27) D 28) E 29) D 30) E 31) D 32) E 33) D 34) B 35) D 36) A 37) A 38) C 39) A 40) D 41) B 42) B 43) B 44) D 45) E 46) C 47) E 48) E 49) A 50) A 16

Answer Key Testname: C1

51) A 52) A 53) C 54) C 55) B 56) E 57) E 58) E 59) E 60) A 61) A 62) D 63) C 64) A 65) C 66) D 67) D 68) C 69) B 70) A 71) B 72) B 73) B 74) E 75) TRUE 76) FALSE 77) TRUE 78) TRUE 79) FALSE 80) TRUE 81) FALSE 82) FALSE 83) TRUE 84) FALSE 85) FALSE 86) TRUE 87) TRUE 88) TRUE 89) TRUE 90) TRUE 91) FALSE 92) TRUE 93) TRUE 94) FALSE 95) TRUE 96) FALSE 97) TRUE 98) FALSE 99) TRUE 100) FALSE 17

Answer Key Testname: C1

101) TRUE 102) TRUE 103) FALSE 104) TRUE 105) FALSE 106) FALSE 107) TRUE 108) TRUE 109) The five components described in the model are: computer hardware, software, data, procedures, and people. These five components are present in every information system, from the simplest to the most complex. For example, when one uses a computer to write a class report, he/she is using hardware (the computer, storage disk, keyboard, and monitor), software (Word, WordPerfect, or some other word-processing program), data (the words, sentences, and paragraphs in the report), procedures (the methods used to start the program, enter the report, print it, and save and back up the file), and people (the user).

110) The four nonroutine cognitive skills identified as critical for organizations in the current scenario are as follows: (1) Abstract reasoning—the ability to make and manipulate models.

(2) Systems thinking—the ability to model the components of a system, to connect the inputs and outputs among those components into a sensible whole that reflects the structure and dynamics of the phenomenon observed.

(3) Collaboration—the activity of two or more people working together to achieve a common goal, result, or work product.

(4) Ability to experiment—making a reasoned analysis of an opportunity, envisioning potential solutions, evaluating those possibilities, and developing the most promising ones, consistent with the resources you have.

111) The most common definition of information is that information is knowledge derived from data, whereas data is defined as recorded facts or figures. Another common definition is that information is data presented in a meaningful context. A third definition of information that one often hears is that information is processed data, or sometimes, information is data processed by summing, ordering, averaging, grouping, comparing, or other similar operations. The fundamental idea of this definition is that individuals do something to data to produce information.

112) 1. It will give you the background you need to assess, evaluate, and apply emerging information systems technology to business.

2. It can give you the ultimate in job security—marketable skills—by helping you learn abstraction, systems thinking, collaboration, and experimentation.

3. Many well-paid MIS-related jobs are in high demand.

113) Information systems and computer technology provide job and wage benefits beyond just IS professionals. As the price of computer technology plummets, the value of jobs that benefit from it increases dramatically. For example, plentiful, high-paying jobs are available to business professionals who know how to use information systems to improve business process quality, or those who know how to interpret data mining results for improved marketing, or those who know how to use emerging technology like 3D printing to create new products and address new markets.

114) By 2031, privacy may be increasingly difficult to maintain. Your data will be collected by new kinds of apps, flowing through the cloud, and be packaged for sale by companies providing "free" services. Social relationships may suffer as well. We may become less connected to people as we become more connected to systems.

115) An information system (IS) is an assembly of hardware, software, data, procedures, and people that produces information. In contrast, information technology (IT) refers to the products, methods, inventions, and standards used for the purpose of producing information.

116) Data needs to be sufficient for the purpose for which it is generated, but just barely so. We are inundated with data; one of the critical decisions that each of us has to make each day is what data to ignore. The higher one rises into management, the more data one will be given, and because there is only so much time, the more data one will need to ignore. So, data should be sufficient, but just barely.

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Answer Key Testname: C1

117) Good information is conceived from accurate, correct, and complete data that has been processed correctly as expected.

The IS function can develop a bad reputation in the organization if a system is known to produce inaccurate data. In such a case, the information system becomes a waste of time and money as users develop workarounds to avoid the inaccurate data.

118) The Digital Revolution was the conversion from mechanical and analog devices to digital devices. This shift to digital devices meant monumental changes for companies, individuals, and the society as a whole. The problem was, people couldn't really understand how, or even why, this shift was going to affect them. Much like people today, they based their future projections on past events. They knew factories, bureaucracies, mass production, and operational efficiency. But this knowledge didn't prepare them for the changes that were coming.

The Digital Revolution didn't just mean that new "digital" equipment was replacing old mechanical, or analog, equipment. These new digital devices could now be connected to other digital devices and share data among themselves. They could also work faster as processor speed increased.

119) A system is a group of components that interact to achieve some purpose. An information system (IS) is a group of components that interact to produce information. A management information system is defined as a system that helps organizations achieve their strategies.

120) The five characteristics of data are as follows: (1) Accurate—Good information is based on correct and complete data, and it has been processed correctly as expected.

(2) Timely—Good data is produced in time for its intended use.

(3) Relevant—Good data is relevant both to the context and to the subject.

(4) Just barely sufficient—Good data is sufficient for the purpose for which it is generated, but just barely so.

(5) Worth its cost—For good data to be worth its cost, there must be an appropriate relationship between the cost of data and its value.

121) Management and use, information systems, and strategies.

122) The five components of the information systems framework are: computer hardware, software, data, procedures, and people. The five components are arranged in order of ease of change and the amount of organizational disruption. It is usually a simple matter to order new hardware and install it. Obtaining or developing new programs is more difficult.

Creating new databases or changing the structure of existing databases is still more difficult. Changing procedures, requiring people to work in new ways, is even more difficult. Finally, changing personnel responsibilities and reporting relationships and hiring and terminating employees are both very difficult and very disruptive to an organization.

123) The relation between data and information can be understood with the help of a graph. The graph is data that humans perceive, and from that perception conceive information. In short, if it's on a piece of paper or on a digital screen, it's data. If it's in the mind of a human, it's information. The quality of thinking, or ability to conceive information from data, is determined by one's cognitive skills. The data is just the data; the information conceived from it is the value that one adds to the information system. People have different perceptions and points of view, not surprisingly, then, they will conceive different information from the same data.

124) People are part of every information system that they use. The user's mind and thinking are not merely a component of the information systems they use; they are the most important component. This is so because, even if users have the perfect information system, if they do not know what to do with the data that it produces, they are wasting both their time and money. The quality of users' thinking is what determines the quality of the information that is produced.

125) According to Nielsen's Law, "network connection speeds for high-end users will increase by 50 percent per year."

Because of this law, the types of services and applications that can be provided over networks (i.e. the Internet) have changed radically. Therefore, it is important for managers to realize that, because of Nielsen's Law, networks will become faster, new companies, new products, and new platforms will emerge.

19

Exam Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Which of the following is most likely to change in the next ten years?

A) relationship between competitive advantage and information systems B) model of business strategy C) principles of competitive advantage D) competitive advantage mechanism E) pace of integration of new technology

1)

2) Which of the following principles of competitive advantage is related to process implementations?

A) enhance services B) create new services C) create new products D) differentiate services E) lock in buyers

2)

3) According to Porter, to be effective all of the following must be consistent with the organization's strategy except ________.

A) objectives B) budget C) goals D) culture E) activities

3)

4) Streamtech, a manufacturer of automobiles, recently received a patent for an unmanned search boat. By doing this, Streamtech has ________.

A) established an alliance B) locked in its suppliers C) introduced product differentiation D) created an entry barrier E) reduced the cost of operations

4)

5) LNG is a large multinational appliance manufacturer. The company gets raw materials from many vendors. In this case, LNG is characterized by ________.

A) low bargaining power over its suppliers B) very low threat of substitute products C) very low threat of new entrants in the market D) very high bargaining power over its customers E) high bargaining power over its suppliers

5)

6) ________ is a means through which an organization can gain a competitive advantage through process implementations.

A) Establishing alliances B) Creating new products C) Creating new services D) Differentiating services E) Enhancing products

6)

1

7) According to Porter, most of the value in service-oriented companies is generated by all of the following activities except ________.

A) sales B) inbound logistics C) marketing D) operations E) service activities

7)

8) Organizations can lock in suppliers either by making it difficult to switch to another organization or by ________.

A) increasing the complexity of their products B) reducing the bargaining power of consumers C) increasing the margin on their products D) reducing investments in their supply chain E) making it easy to work with the organization

8)

9) Hueblue Software, an application provider to the gaming industry, decided to enhance its portfolio by developing motion-control-enabled games for the mobile gaming industry. In this scenario, which competitive strategy is Hueblue Software implementing?

A) product differentiation B) raising barriers to market entry C) locking in customers D) locking in buyers E) establishment of alliances

9)

10) Which of the following statements is consistent with the central idea of business process design?

A) Organizations should create new business processes instead of improving existing systems.

B) Business processes should focus on improving individual functional systems.

C) Experimental technology can drive innovative business processes.

D) Technology should be used to supplement the existing value chain.

E) Technology should be used to modify and improve standard business processes.

10)

11) A group of shoe manufacturing firms purchases raw materials collectively from a single supplier to obtain better deals. This is an example of obtaining competitive advantage by ________.

A) enhancing the products B) locking in customers C) creating a new service D) differentiating the industry E) establishing alliances

11)

12) Kai runs a local auto parts store. A customer comes in and asks for special supercharger. Kai orders it from the factory. This activity can be classified under ________.

A) outbound logistics B) customer service C) operations D) inbound logistics E) marketing

12)

2

13) Which of the following paved the way for the creation of a business process design?

A) support activities B) electronic data interchanges C) triggers D) linkages E) primary activities

13)

14) Porter defined value as the ________.

A) amount of money that a customer is willing to pay for an offering B) perceived quality differences across products C) extent of after-sale service provided to customers D) perceived satisfaction of the customers and sellers after a transaction E) actual money exchanged in return of a product/service

14)

15) The difference between the value that an activity generates and the cost of the activity is called the ________.

A) profit B) margin C) turnover D) quick ratio E) revenue

15)

16) Identify the principle of competitive advantage that is associated with product implementations.

A) raise barriers to market entry B) enhance services C) lock in suppliers D) establish alliances E) lock in customers

16)

17) The automobile industry is characterized by many manufacturers and intense competition among them. According to Porter's five forces model, this statement illustrates ________.

A) high bargaining power of suppliers B) low threat of substitutions C) low bargaining power of customers D) high levels of rivalry E) low levels of rivalry

17)

18) Which of the following value chain activities involves collecting, storing, and physically distributing the product to buyers?

A) operations B) customer service C) outbound logistics D) sales and marketing E) inbound logistics

18)

3

19) Madison, the project manager of a sports apparel company, estimates that the demand for jogging shoes is likely to decline in the coming months. He advises the procurement department to order raw material accordingly to ensure minimum wastage. This intercommunication that facilitates smooth operations is called ________.

A) outbound logistics B) linkages C) strategizing D) interoperation E) market research

19)

20) RAC Associates is a car rental company that rents cars to tourists in the United States. The company uses tracking devices and magnetic locks to prevent car theft. These procedures are examples of ________.

A) strategic activities B) premeditated activities C) primary business processes D) supporting business processes E) core activities

20)

21) Which of the following value chain activities involves inducing buyers to purchase a product and providing a means for them to do so?

A) outbound logistics B) sales and marketing C) operations D) customer service E) inbound logistics

21)

22) The cost of the business process is the sum of the cost of the inputs and the ________.

A) value of the products B) cost of the products C) cost of the activities D) cost of the outputs E) value of the outputs

22)

23) An automobile company decides to improve the quality of its products and bring more variety into its entire product line. The company has decided to adopt ________.

A) industry-wide cost leadership B) industry-wide differentiation C) focused cost leadership D) broad differentiation E) focused differentiation

23)

24) Which of the following could be a result of changing business processes.

A) Satisfied employees because many embrace changes.

B) The reuse of databases.

C) Employees may have to learn a new procedure.

D) A new way of performing activities is encouraging to employees.

E) Returning customers because the new process improves communication.

24)

4

25) Which of the following value chain activities involves assisting users with handling of the products after sale, thus maintaining and enhancing the products' value?

A) operations B) outbound logistics C) inbound logistics D) customer service E) sales and marketing

25)

26) Which of the following defines a repository?

A) a backup plan of action in case of emergencies B) a collection of something, such as data or raw materials C) a financial center for storing overnight balances D) a place where finished goods undergo a quality check before shipment E) a department devoted specifically for market research

26)

27) Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high ________.

A) brand value B) technological dependency C) switching costs D) entry barriers E) product standards

27)

28) Which of the following is a primary activity in the value chain?

A) negotiating prices with vendors B) investigating new designs C) finding suitable vendors to supply raw materials D) setting up contractual arrangements with various suppliers E) receiving and handling of raw materials and other inputs

28)

29) The difference between the total value added and the total costs incurred is called the ________ of the value chain.

A) gross turnover B) total margin C) total revenue D) taxable income E) actual value

29)

30) Neil creates an application which facilitates the easy storage and access of employee information like name, age, experience, and qualification for his organization. The application is an example of a(n) ________.

A) activity B) linkage C) program D) array E) repository

30)

31) Reduction in production cost results in ________.

A) increased profitability B) increased process complexity C) increased competition D) better customer service E) lower shareholder value

31)

5

32) Which of the following statements best describes the role of operations in a value chain?

A) inducing buyers to purchase products and providing a means for them to do so B) receiving, storing, and disseminating inputs to products C) assisting customers' use of products D) transforming inputs into the final products E) collecting, storing, and distributing products to buyers

32)

33) As a competitive advantage, how can a company make it difficult for a customer to switch to another company?

A) Give a customer a new doorbell camera on their month-to-month contract.

B) Allowing open source developers to create apps for their tablet.

C) Establishing service sharing between the company's competitor.

D) Allow a customer to purchase a new phone on a payment plan, but they have to sign a 2-year contract.

E) Offer a new service that is different from their competitors.

33)

34) The ________ created by Porter states that firms should create new, more efficient business processes that integrate the activities of all departments involved in a value chain.

A) business process design B) Lean Manufacturing method C) product differentiation model D) Lean Innovation model E) Six Sigma methodology

34)

35) Cooper, the owner of a small bicycle manufacturing company, is striving to keep his organization running smoothly while remaining profitable in a highly competitive market. Cooper chooses process implementation to give his company a competitive edge over others. Which of the following principles is he most likely to implement?

A) differentiating products B) redesign existing products C) creating new products D) reducing costs E) enhancing services

35)

36) Lynn, the manager of a transportation company, goes through the product delivery schedule. She assigns territories to each executive of the delivery team, and also contacts the fleet supervisor to arrange trucks for transportation. Which activity of the value chain is Lynn executing?

A) sales B) outbound logistics C) inbound logistics D) marketing E) customer service

36)

37) According to Porter's five forces model, a student's choice of lunch options at a large food court would be an example of a strong force for ________.

A) threat of substitutions B) rivalry C) bargaining power of customers D) threat of new entrants E) industry power

37)

6

38) A large software manufacturer attempts to lock in customers by making it difficult for them to substitute their software with one from another company. The strategy used by the company is referred to as ________.

A) switching costs strategy B) standardization strategy C) bait-and-switch strategy D) marketing strategy E) low cost operation strategy

38)

39) Which of the following factors determines the structure, features, and functions of an information system used in a company?

A) the value of its brands B) the competitive strategy C) the company's PE ratio D) the size of the company E) the number of competitors

39)

40) Competitive strategy determines all of the following except ________.

A) the company's PE ratio B) functions C) structure of the information system D) goals and objectives E) features

40)

41) Which of the following principles of competitive advantage is associated with product implementations?

A) establishing alliances B) locking in suppliers C) locking in customers D) raising barriers to market entry E) differentiating service offerings

41)

42) Porter's five forces model is used to assess ________.

A) market share B) future product demand C) industry structure D) life cycles of products E) internal competition

42)

43) Launch Cars, a car manufacturing company, has patented its breakthrough technology that reduces pollutant emissions by half. The company is now an active supporter of anti-pollution laws that are likely to diminish the profitability of many other auto makers. Launch Cars is attempting to ________.

A) lock in suppliers B) establish alliances C) lock in customers D) reduce costs E) raise barriers to market entry

43)

7

44) According to Porter's five forces model, in which of the following examples would rivalry be considered as a weak force affecting the market?

A) holiday tour agents B) packaged food manufacturers C) search engine designers D) insurance providers E) used car dealers

44)

45) FunText is a company that owns an app used for text messaging. It recently offered a six-month membership extension to its existing customers without any additional charges. Which competitive strategy is FunText trying to implement in this scenario?

A) product differentiation B) creation of a new service C) enhancing existing products D) locking in customers E) locking in suppliers

45)

46) According to Porter's five forces model, which of the following firms would be least affected by the threat of substitutes?

A) a food vendor at a county fair B) a corner latte shop in Atlanta C) a firm that sells the only drug for a disease D) a convenience store that sells retail products E) a used car dealership in New York

46)

47) According to Porter's five forces model, in which of the following situations would the supplier have the highest bargaining power?

A) a defense contractor that only makes products for the U.S. Navy B) a retailer who buys finished goods from many small suppliers C) a fashion designer catering to a niche market D) a restaurant owner who serves only army veterans E) a dealer of a patented material for smartphone manufacturers

47)

48) Which of the following principles of competitive advantage is related to process implementations?

A) differentiate products B) create new services C) reduce costs D) create new products E) enhance services

48)

49) Jason's Burgers, a famous diner, recently started taking orders online to reduce the customer wait time. This arrangement was perfect for busy office workers who frequented the place, and the sales went up considerably. Jason's Burgers attempted to ________.

A) create a new product B) reduce costs C) raise barriers to market entry D) lock in customers E) establish alliances

49)

8

50) A retail company sells agricultural produce and consumer products. The company procures materials from farmers and local producers. This process is an example of ________.

A) operational management B) internal marketing C) customer service D) inbound logistics E) outbound logistics

50)

51) A mining company develops a new processing technique using only light and patents the process.

This situation is characterized by ________.

A) high threat of new entrants B) high bargaining power of customers C) low threat of substitutions D) low threat of new entrants E) low bargaining power of suppliers

51)

52) Focused cost leadership is observed when a product has the lowest cost ________.

A) across the product mix offered by a company B) across multiple product categories C) across the entire industry D) among a group of competitors E) within an industry segment

52)

53) Porter recognized a movement to create integrated, cross-departmental systems. His work lead to the creation of a new discipline called ________.

A) supporting activities B) business process design C) linkages D) value chaining E) cost reduction planning

53)

54) Identify the activity in the value chain that involves receiving and handling of raw materials and other inputs to the product.

A) manufacturing B) optimized ordering C) procurement D) outbound logistics E) inbound logistics

54)

55) According to Porter, an organization responds to the structure of its industry by choosing a(n) ________ strategy.

A) information driven B) outcome driven C) data driven D) competitive E) goal driven

55)

9

56) According to Porter's five forces model, an oil producer will have increased ________ if the supply of oil drops sharply.

A) bargaining power B) threat of new entrants C) threat of substitutes D) risk of rivalry E) industry coalescence

56)

57) A(n) ________ is a network of activities that generate worth by transforming inputs into outputs.

A) information system B) business process C) competitive strategy D) value chain E) linked investment

57)

58) I-scream-4 Ice Cream recently faced competition against their flagship brand of "Orange peel ice cream." A competitor made significant in-roads into the market by offering three varieties of "Orange peel ice cream." I-scream-4 Ice Cream decided to counter this threat by introducing five new varieties of ice creams. Which competitive strategy is I-scream-4 Ice Cream implementing?

A) product differentiation B) cost differentiation C) cost leadership D) service focus E) innovation focus

58)

59) Which of the following employees performs a support activity in the value chain?

A) Noah is the corporate accountant who manages tax liabilities.

B) Nora is a financial analyst who rates and gives investment advice.

C) Nathaniel is in charge of setting up contractual agreements with vendors.

D) Sofia is a member of the recruitment team.

E) Jackson is involved in the development of technological infrastructure.

59)

60) In a manufacturing business, which of the following transforms finished goods into cash?

A) manufacturing process B) outbound logistics C) sales process D) warehouse operations E) inbound logistics

60)

61) Bargaining power of customers is likely to be the highest for markets involving ________.

A) rare paintings B) vintage cars C) patented drugs D) limited edition apparel E) industrial products

61)

10

62) As the purchasing manager of a company that designs costumes, Natalie orders yards of fabric in preparation for Halloween. Natalie's duties can be classified under the ________ category of a business process.

A) operations B) sales C) marketing D) outbound logistics E) inbound logistics

62)

63) In the value chain, which of the following is an example of a primary activity?

A) procurement B) manage company resources C) human resources D) support employees E) service customers

63)

64) The International Zoological club publishes a monthly magazine for zoology enthusiasts. Members are required to pay an initial fee to cover the first two years of the subscription when registering with the club. In this scenario, the International Zoological club is ________.

A) enhancing services B) locking in customers C) establishing alliances D) creating a new product E) standardizing the product

64)

65) PL Inc. implements an information system to improve its supply chain. The system helps the organization to reduce wastes and optimally utilize its resources. In this scenario, implementing the information system has helped PL Inc. to gain a competitive advantage by ________.

A) establishing alliances B) enhancing its products C) reducing its costs D) differentiating its products E) locking in customers

65)

66) Which of the following statements is TRUE of business process designs?

A) They should be accompanied by a change in management.

B) They do not involve the need to follow different procedures.

C) Process designs very rarely attract employee resistance.

D) Process designs map directly to existing work processes.

E) Most process designs require people to work in new ways.

66)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

67) An organization's competitive strategy determines the structure of information systems.

67)

68) An inventory of raw materials is an example of a repository.

68)

69) The cost of the business process is the cost of the inputs plus the cost of the outputs.

69)

70) Each activity in a business process is a business function that receives inputs and produces outputs.

70)

11

71) The primary activity of sales and marketing is the collection, storage, and physical distribution of the products to the buyers.

71)

72) In a manufacturing business, the materials ordering process transforms cash into a raw materials inventory.

72)

73) In order to create a competitive advantage, a company has to pioneer a new technology?

73)

74) A linkage is a network of activities that generate value by transforming inputs into outputs.

74)

75) Organizations cannot gain a competitive advantage by enhancing existing products or services.

75)

76) An organization responds to the structure of its industry by choosing a competitive strategy.

76)

77) Creating a new product to increase margin is an example of using product implementations to achieve competitive advantage.

77)

78) The competitive strategy of locking in customers by making it difficult for them to move to another product is called establishing high switching costs.

78)

79) A business with a differentiation strategy will add cost to an activity only as long as the activity has a positive margin.

79)

80) A major drawback of Porter's five forces model is that it ignores the rivalry among firms in the industry.

80)

81) An automobile manufacturer focusing on low-end buyers is following an industry-wide differentiation strategy.

81)

82) Support activities in a value chain include the processes of finding vendors, setting up contractual arrangements, and negotiating prices.

82)

83) An organization's goals and objectives are determined by its competitive strategy.

83)

84) The sales process involves sales and marketing as well as outbound logistics activities.

84)

85) Information systems create competitive advantage by providing support to a product rather than by becoming a part of the product.

85)

86) The collective technical capability of an organization determines its competitive strategy.

86)

87) Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service.

87)

88) The streamlining of business processes to increase margin is key to obtaining competitive advantage.

88)

89) Only humans can perform an activity in a business process.

89)

12

90) The total margin of the value chain is the difference between the total value added and the total costs incurred.

90)

91) In the value chain, customer service is concerned with inducing buyers to purchase the product and providing a means for them to do so.

91)

92) Organizations can lock in customers by making it difficult or expensive for them to move to another product.

92)

93) In the inbound logistics activity of a value chain, the manufacturer receives, stores, and disseminates inputs to a product.

93)

94) The streamlining of business processes to reduce costs is key to competitive strategy.

94)

95) The difference between the value that an activity generates and the cost of the activity is called margin.

95)

96) According to Porters five forces model, companies compete in one of five strategies.

96)

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

97) What is a business process? How do you determine the cost and margin of a business process?

98) Explain the relation between competitive strategies and information systems.

99) Define the primary activities in a generic value chain.

100) Explain linkages with an example.

101) Explain the concept of business process design.

102) Briefly explain Porter's five forces model.

103) What changes will the pace of change bring about in the future?

104) According to Porter's four competitive strategy model, what are the four competitive strategies from which firms can choose?

105) Give an example of a technology that is likely to have a major effect on competitive strategies in the years to come.

106) Distinguish between the primary and support activities of a value chain.

107) What kind of technological changes can be expected in the next ten years?

108) What are the various support activities in a value chain?

109) Briefly describe the concepts of value, margin, and value chain as defined by Porter.

13

110) Briefly explain process implementation in competitive strategies.

111) How might robotics be used in the future and why would companies want to use robots?

112) Briefly explain product implementation in competitive strategies.

14

Answer Key Testname: C2

1) E 2) E 3) B 4) C 5) E 6) A 7) B 8) E 9) A 10) A 11) E 12) D 13) D 14) A 15) B 16) B 17) D 18) C 19) B 20) D 21) B 22) C 23) B 24) C 25) D 26) B 27) C 28) E 29) B 30) E 31) A 32) D 33) D 34) A 35) D 36) B 37) A 38) A 39) B 40) A 41) E 42) C 43) E 44) C 45) D 46) C 47) E 48) C 49) D 50) D 15

Answer Key Testname: C2

51) C 52) E 53) B 54) E 55) D 56) A 57) B 58) A 59) C 60) C 61) E 62) E 63) E 64) B 65) C 66) E 67) TRUE 68) TRUE 69) FALSE 70) TRUE 71) FALSE 72) TRUE 73) FALSE 74) FALSE 75) FALSE 76) TRUE 77) TRUE 78) TRUE 79) TRUE 80) FALSE 81) TRUE 82) TRUE 83) TRUE 84) TRUE 85) FALSE 86) FALSE 87) TRUE 88) TRUE 89) FALSE 90) TRUE 91) FALSE 92) TRUE 93) TRUE 94) TRUE 95) TRUE 96) FALSE

16

Answer Key Testname: C2

97) A business process is a network of activities that generate value by transforming inputs into outputs. Each activity is a business function that receives inputs and produces outputs. An activity can be performed by a human, by a computer system, or by both.

The cost of the business process is the cost of the inputs plus the cost of the activities. The margin of the business process is the value of the outputs minus the cost.

98) An organization's goals and objectives are determined by its competitive strategy. Thus, ultimately, competitive strategy determines the structure, features, and functions of every information system. In short, organizations examine the structure of their industry and determine a competitive strategy. That strategy determines value chains, which, in turn, determine business processes. The structure of business processes determines the design of supporting information systems.

99) The primary activities in a generic value chain are as follows: (1) Inbound logistics—It is the receiving, storing, and disseminating of inputs to the products.

(2) Operations/manufacturing—It is the transforming of inputs into the final products.

(3) Outbound logistics—It is the collecting, storing, and physically distributing of the products to buyers.

(4) Sales and marketing—It is defined as inducing buyers to purchase the products and providing a means for them to do so.

(5) Customer service—It is defined as assisting customers' use of the products and thus maintaining and enhancing the products' value.

100) Porter's model of business activities includes linkages, which are interactions across value activities. For example, manufacturing systems use linkages to reduce inventory costs. Such a system uses sales forecasts to plan production; it then uses the production plan to determine raw material needs and then uses the material needs to schedule purchases.

The end result is just-in-time inventory, which reduces inventory sizes and costs.

101) The central idea of business process design is that organizations should not automate or improve existing functional systems. Rather, they should create new, more efficient business processes that integrate the activities of all departments involved in a value chain.

102) Porter's five forces model is used to assess an industry structure. According to this model, five competitive forces determine industry profitability: bargaining power of customers, threat of substitutions, bargaining power of suppliers, threat of new entrants, and rivalry among existing firms. The intensity of each of the five forces determines the characteristics of the industry, how profitable it is, and how sustainable that profitability will be.

103) We can reasonably assume that the pace of change and the pace at which new technology is integrated will be fast and increasing, possibly accelerating, in the next 10 years. We need to view this increased pace as rapidly creating opportunities in which you can excel. You know it's coming. You know that, if not self-driving vehicles, then some other new technology-based product that is being constructed in someone's garage today will change the competitive landscape for the company for which you will work.

104) An organization responds to the structure of its industry by choosing a competitive strategy. According to Porter's competitive strategy model, firms engage in one of these four strategies. An organization can focus on being the cost leader, or it can focus on differentiating its products or services from those of the competition. Further, the organization can employ the cost or differentiation strategy across an industry or it can focus its strategy on a particular industry segment.

105) Augmented reality (AR) and virtual reality devices (VR) are just now being released to consumers. Drones are currently used by hobbyists and some small companies, but large-scale commercial use is still in the experimental stage. Self-driving cars are in the late development to early adoption phases and are getting a lot of attention from manufacturers and consumers. By 2029, new 3D applications, games, and user interfaces will be developed.

Consequently, companies may need to redesign their business processes. Drones and self-driving cars will see widespread use and have a major effect on competitive strategies. For many products, transportation is a major cost.

Entire value chains will be disrupted as transportation and delivery costs plummet. Robotics will likely be the next big area of technological expansion.

17

Answer Key Testname: C2

106) Primary activities directly add value to the value chain of an organization. Examples are operations and marketing.

The support activities in the generic value chain contribute indirectly to the production, sale, and service of the product. They include procurement, which consists of the processes of finding vendors, setting up contractual arrangements, and negotiating prices.

107) In the next 10 years, business models, strategies, and competitive advantages are unlikely to change. Their relationships to business processes and IS are also unlikely to change. They may evolve and new models may rise to the surface, but those new models will likely be extensions of existing models within existing paradigms. What is likely to change, however, is pace. The speed of business is continuing to accelerate because of faster Internet speeds, new networked devices, and improved hardware. The Web and other social sites (e.g., Twitter, Facebook, etc.) enable the rapid spread of new ideas and innovations. They also require businesses to constantly be on alert for changes that may affect their strategy in the near future.

108) The support activities in the generic value chain contribute indirectly to the production, sale, and service of the product. They include procurement, which consists of the processes of finding vendors, setting up contractual arrangements, and negotiating prices. Supporting functions add value, albeit indirectly, and they also have costs. It is difficult to calculate the margin for such activities because it is difficult to know the specific value added by a support activity.

109) Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service. The difference between the value that an activity generates and the cost of the activity is called the margin. A value chain is a network of value-creating activities. That generic chain consists of five primary activities and four support activities.

110) Organizations can use various process implementation competitive strategies to gain competitive advantage.

Organizations can lock in customers by making it difficult or expensive for customers to switch to another product.

This strategy is sometimes called establishing high switching costs. Organizations can lock in suppliers by making it difficult to switch to another organization, or, stated positively, by making it easy to connect to and work with the organization. Competitive advantage can also be gained by creating entry barriers that make it difficult and expensive for new competition to enter the market. Another means to gain competitive advantage is to establish alliances with other organizations. Finally, organizations can gain competitive advantage by reducing costs.

111) Robotics will likely be the next big area of technological expansion. Even now, companies are introducing robotics into areas outside of manufacturing. The strategic implications of a robotic workforce cannot be understated. Robots don't require health care, time off, vacations, breaks, sick days, or workman's compensation. They don't join unions, get mad, sue their employer, harass coworkers, or drink on the job. They also work 24 hours a day without a paycheck!

Combine that with a great AI like IBM's Watson, and you've got an entirely different workforce. By 2031 we may understand "labor" in an entirely different way.

112) Organizations gain a competitive advantage by creating new products or services, by enhancing existing products or services, and by differentiating their products and services from those of their competitors. Information systems create competitive advantages either as part of a product or by providing support to a product.

18

Exam Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Which type of employee fraud is the most frequent?

A) Billing B) Skimming C) Expense reimbursement D) Non-cash E) Payroll

1)

2) An ________ and an OLAP report are the same thing.

A) OLAP permutation B) OLAP cube C) OLAP dimension D) OLAP measure E) OLAP array

2)

3) In ________, statistical techniques can identify groups of entities that have similar characteristics.

A) cluster analysis B) neural networks C) regression analysis D) metadata matching E) supervised data mining

3)

4) Which of the following accurately defines a dimension in an OLAP report?

A) It is a characteristic of a measure.

B) It is referred to a decision tree.

C) It is an item that is processed in the OLAP report.

D) It is a data item of interest.

E) It is a branch in a decision tree.

4)

5) Which of the following is an example of a measure in an OLAP report?

A) sales region B) average cost C) customer location D) customer type E) purchase date

5)

6) A data ________ is a data collection, smaller than the data warehouse that addresses the needs of a particular department or functional area of the business.

A) mine B) mart C) conduit D) model E) cube

6)

1

7) Artificial intelligence (AI) research has been driven by the demand for applications that ________ such as ways to filter offense content.

A) are cheap B) cater to everyone C) use theories D) solve practical problems E) are useful for just one task

7)

8) Problematic operational data is termed as ________.

A) metadata B) granular data C) dirty data D) rough data E) septic data

8)

9) What is a good solution to assist an organization when there is a need to reduce data?

A) Clean the data B) Averaging the columns C) Integrate the data D) Use a different source E) Statistical sampling

9)

10) ________ are information systems that support the management and delivery of documents including reports, Web pages, and other expressions of employee knowledge.

A) Decision Support Systems (DSS) B) Document Delivery System (DDS) C) Online Analytical Processing (OLAP) systems D) Data Transfer Protocols (DTP) E) Content Management Systems (CMS)

10)

11) What is an example of a Google practical artificial intelligence (AI) application?

A) Bing B) Content Moderator C) AWS Deep Learning D) Translator Text E) OpenFrameworks

11)

12) What is a reason why artificial intelligence (AI) has advanced in recent years.

A) There are more connected devices.

B) Consumers are demanding more AI. C) The Internet demanded it.

D) The cost to implement AI has decreased.

E) Cloud computing is on the decline and AI will take the cloudspace.

12)

13) ________ is the extraction of knowledge from data based on algorithms created from training data.

A) Historical analysis B) Computer analysis C) Processing data D) Machine learning E) Simulation

13)

2

14) IBM's Watson uses ________ or the ability of a computer system to understand spoken human language.

A) spatial analysis B) context clues C) common sense D) natural language processing (NLP) E) extreme questioning

14)

15) RFM analysis is used to analyze and rank customers according to their ________.

A) purchasing patterns B) motivation and needs C) propensity to respond to marketing stimulus D) receptivity to promotions E) socioeconomic status

15)

16) Which of the following phenomena states that the more attributes there are, the easier it is to build a model that fits the sample data?

A) Murphy's law B) economies of scale C) uncertainty principle D) curse of dimensionality E) attribute paradox

16)

17) Organizations see artificial intelligence (AI) as a(n) ________ of new technologies.

A) enabler B) representation C) twin D) goal E) precursor

17)

18) ________ is a BI application that inputs data from one or more sources and applies reporting operations to that data to produce business intelligence.

A) A NoSQL application B) An OLAP application C) A classful application D) A reporting application E) A trans enterprise application

18)

19) Capturing customers' clicking behavior is referred to as ________.

A) Attributed data B) Clickstream data C) Metadata D) Dimensional data E) Outsourced data

19)

3

20) ________ is defined as information containing patterns, relationships, and trends of various forms of data.

A) Spatial intelligence B) Pattern recognition C) Business intelligence D) Business process management E) Process mining

20)

21) ________ is focused on completing a single specific task.

A) Strong AI B) A machine C) Weak AI D) Super intelligent E) Singular

21)

22) Samuel, a researcher, deduces that single women between the ages of 25 and 30, who usually live in the suburbs and make thrifty purchases, prefer a particular brand of washing machines. In this case, Samuel uses ________ to understand customer behavior.

A) metadata matching B) supervised data mining C) neural networks D) market-basket analysis E) cluster analysis

22)

23) Which of the following is a fundamental category of business intelligence (BI) analysis?

A) data mining B) automation C) encapsulation D) cataloging E) data hiding

23)

24) Which of the following statements is TRUE of source data for a business intelligence (BI) system?

A) It refers to the detailed level of data.

B) It refers to the hierarchical arrangement of criteria that predict a classification or a value.

C) It refers to the relative strength of data's predictive capabilities.

D) It refers to data that the organization purchases from data vendors.

E) It refers to the organization's metadata.

24)

25) Achilles Gear has four major retail customers. Based on the following RFM scores of these customers, the sales team at Achilles' should attempt to up-sell more expensive sporting goods to ________.

A) Goalkeeper with an RFM score of 551 B) WindyRiver Sports with an RFM score of 225 C) Cable Sports Inc. with an RFM score of 545 D) Five Star Stores with an RFM score of 214 E) Pelican Stores with an RFM score of 113

25)

4

26) Which of the following is a characteristic of BigData?

A) It is generated rapidly.

B) It is typically only text-based.

C) It is unstructured.

D) It is usually around 100 gigabytes in size.

E) It is processed using traditional techniques.

26)

27) ________ is the application of statistical techniques to find patterns and relationships among data for classification and prediction.

A) Database normalization B) Data clustering C) Data mining D) Data optimization E) Data warehousing

27)

28) In order for a computer to pass the ________, a human should have a conversation with it and not be able to tell if it was a machine or a human.

A) smart test B) language test C) super test D) Intelligence Test E) Turing test

28)

29) Ajax Inc. is one of the customers of a well-known linen manufacturing company. Ajax has not ordered linen in some time, but when it did order in the past it ordered frequently, and its orders were of the highest monetary value. Under the given circumstances, Ajax is most likely to have an RFM score of ________.

A) 155 B) 151 C) 515 D) 555 E) 511

29)

30) Opezim Plastics has been supplying raw materials to JM Toys for five years. JM Toys has an RFM score of 121. With reference to the score, how should the sales team at Opezim respond to JM Toys?

A) The sales team should let go of JM Toys, for the loss will be minimal.

B) The sales team should contact JM Toys immediately.

C) The sales team should attempt to up-sell more expensive goods to JM Toys.

D) The sales team should spend more time with JM Toys.

E) The sales team should attempt to sell directly to the CEO.

30)

31) ________ is a technique for harnessing the power of thousands of computers working in parallel.

A) MapReduce B) RFM analysis C) Reposition D) Big data looping E) Granularity

31)

32) Which type of employee fraud has the highest median loss?

A) Payroll B) Cash on hand C) Check tampering D) Financial statement fraud E) Billing

32)

5

33) An algorithm that predicts the probability of a certain outcome based on prior occurrences of related events is called ________.

A) an algorithm B) Myers Briggs C) Naïve Bayes Classifier D) LIDAR E) a backend system

33)

34) When a system is considered ________ it can complete all of the same tasks a human can.

A) super intelligent B) strong AI C) user friendly D) singular E) complete

34)

35) What is an example of an Amazon practical artificial intelligence (AI) application?

A) Echo B) DeepText C) Cortana D) Homepod

35)

E) Siri

36) What is one way humans can survive the workplace shift caused by artificial intelligence?

A) Discourage creativity.

B) Fight back.

C) Develop skills machines cannot do.

D) Create personal goals.

E) Stop experimenting.

36)

37) How do machines learn?

A) By listening to the surroundings B) By listening for a wake word C) By humans teaching them things D) Through experience E) With repetition of the same facts

37)

38) What may happen if an organization chooses to say no to artificial intelligence (AI)?

A) The organization will shut down.

B) The government may force an organization to adopt AI. C) The organization may lose a competitive advantage.

D) It will be more expensive to do business.

E) Workers may quit.

38)

39) ________ is the process of creating value from intellectual capital and sharing that knowledge with employees, managers, suppliers, customers, and others who need it.

A) Repository management B) Industrial information exchange C) Business process reengineering D) Knowledge management E) Intellectual property protection

39)

6

40) A set of procedures used to solve mathematical problems is called ________.

A) a set of procedures B) a flowchart C) a process D) a metadata E) an algorithm

40)

41) ________ is the process of making systems operate without human intervention.

A) Computer programming B) Automation C) Knowledge management D) Belief E) Artificial intelligence (AI)

41)

42) The viewer of an OLAP report can change its format. Which term implies this capability?

A) online B) analytical C) processing D) alteration E) dimension

42)

43) Which of the following statements is TRUE about unsupervised data mining?

A) Data miners develop a model prior to the analysis and apply statistical techniques to data.

B) Hypotheses must be made before running the analysis.

C) Unsupervised data mining requires tools such as regression analysis.

D) Neural networks are a popular unsupervised data mining application.

E) Analysts do not create a model or hypothesis before running the analysis.

43)

44) ________ is a concept that computer systems will become sophisticated enough that they can adapt and create their own software and hence adapt their behavior without human assistance.

A) Knowledge management B) Moore's Law C) Business intelligence systems D) Expert systems E) The Singularity

44)

45) Because of artificial intelligence, jobs may go away but there will be new types of jobs for humans as long as companies and individuals participate in ________.

A) the dot-com boom B) retooling C) reorganization process D) startups E) project management

45)

46) In large organizations, a group of people manage and run a(n) ________, which is a facility for managing an organization's BI data.

A) neural network B) Web server C) information tank D) OLAP cube E) data warehouse

46)

7

47) ________ is data in the form of rows and columns?

A) Structured data B) Analysis C) Filtered D) A server log E) Coalescing

47)

48) A ________ takes data from the data manufacturers, cleans and processes the data, and locates the data on the shelves.

A) data link layer B) data model C) data warehouse D) data bus E) data mine

48)

49) ________ is a term that refers to the level of detail represented by the data.

A) Identifiable B) Intricacy C) Complexity D) Interoperability E) Granularity

49)

50) ________ refers to the source, format, assumptions and constraints, and other facts about the data.

A) Attributed data B) Clickstream data C) Dimensional data D) Metadata E) Outsourced data

50)

51) Because artificial intelligence (AI) started developing a bad reputation, IBM titled their AI research ________.

A) Incognito B) automation C) the brain D) advances in computing E) cognitive computing

51)

52) All of the following are potential benefits for using a robotic fast-food worker except ________.

A) it may give away food B) it doesn't' sue you for lost wages C) it is cleaner than a human D) it can replace three full-time cooks E) it doesn't take breaks

52)

53) ________ includes a query language titled Pig. A) Korn shell B) Online analytical processing (OLAP) C) MapReduce D) Hadoop E) RFM Analysis

53)

8

54) U.S. Steel Corp. is a well-known steel manufacturing company. SAMCROW, one of the customers of U.S. Steel Corp. holds an RFM score of 111. Which of the following characteristics relates SAMCROW with its RFM score?

A) SAMCROW has ordered recently, but orders infrequently, and it orders the most expensive goods.

B) SAMCROW has not ordered anything for a while and it did not order frequently, but when it did order, it bought the least expensive items.

C) SAMCROW has ordered recently and orders frequently, and it orders the most expensive goods.

D) SAMCROW has ordered recently and orders frequently, but it orders the least expensive goods.

E) SAMCROW has not ordered anything for a while, but when it did order in the past, it ordered frequently, and its orders were of the highest monetary value.

54)

55) Artificial intelligence (AI) requires a large amount of ________ in order to learn, represent knowledge, and process natural language.

A) permission B) time C) developers D) data E) consumers

55)

56) ________ analysis is a way of analyzing and ranking customers according to their purchasing patterns.

A) CRM B) RFM C) Market-basket D) Regression E) Cluster analysis

56)

57) A sales report that is current at the time the user accessed it on a Web server is an example of a(n) ________.

A) expert system B) temporal report C) dynamic report D) static report E) hybrid market report

57)

58) ________ is the ability of a machine to simulate human abilities such as vision, communication, recognition, learning, and decision making in order to achieve a goal.

A) Thinking B) Artificial intelligence (AI) C) Computer programming D) Automation E) Knowledge management

58)

9

59) Which of the following is an example of a supervised data mining technique?

A) regression analysis B) market-basket analysis C) click streaming D) metadata matching E) cluster analysis

59)

60) Which of the following observations about RFM and OLAP reports is TRUE? A) RFM reports have measures and dimensions.

B) RFM reports can drill down into the data to a greater extent than OLAP reports.

C) OLAP reports are more dynamic than RFM reports.

D) RFM reports are more easily manipulated than OLAP reports.

E) RFM reports are more generic than OLAP reports.

60)

61) ________ is the process of obtaining, cleaning, organizing, relating, and cataloging source data.

A) Data entry B) Data scrubbing C) Data mining D) Data acquisition E) Data encryption

61)

62) ________ delivers business intelligence to users without any request from the users.

A) Pulse publishing B) Push publishing C) Desktop publishing D) Accessible publishing E) Pull publishing

62)

63) In ________, data miners develop a model prior to the analysis and apply statistical techniques to data to estimate parameters of the model.

A) click streaming B) supervised data mining C) unsupervised data mining D) metadata matching E) cluster analysis

63)

64) Machine learning is focused on predicting accurate outcomes based on ________ data.

A) questionable B) a complete set of C) previously known training D) current E) future

64)

65) BI servers use ________ to determine what results to send to which users and on which schedule.

A) expert systems B) IP logs C) neural networks D) RSS feeds E) metadata

65)

10

66) Knowledge management (KM) benefits organizations because it ________.

A) improves process quality and increases team strength B) allows suppliers to work according to the organizational policies C) allows distributors to work within the company premises D) improves data integrity, transmission, and value E) enables employees to solve problems and rectify mistakes later

66)

67) Jobs requiring ________ are prime candidates for automation.

A) split shifts B) higher level decision making tasks C) hand calculations D) executive level decision making tasks E) routine mental tasks

67)

68) The remarkable characteristic of OLAP reports is that they are ________, as they are online and the viewer of the report can change their format.

A) informal B) specific C) precise D) dynamic E) accurate

68)

69) AI-enabled machines need humans because they lack ________.

A) the ability to perform routine tasks B) instincts C) oil D) the ability to think like humans E) sensitivity

69)

70) All of the following is considered metadata except ________.

A) the format of the data B) the source of the data C) the constraints on the data D) the assumptions about the data E) the granularity of the data

70)

71) Which of the following statements is TRUE about data marts?

A) Data mart users possess the data management expertise that data warehouse employees have.

B) Data marts address the needs of a particular department or functional area of a business.

C) Data marts contain only metadata for data warehouses.

D) Data marts are larger than data warehouses.

E) A data mart is like a distributor in a supply chain, while a data warehouse can be compared to a retail store.

71)

72) ________ requires the user to request business intelligence (BI) results.

A) Pull publishing B) Push publishing C) Desktop publishing D) Pulse publishing E) Accessible publishing

72)

11

73) Artificial intelligence (AI) research can be done by more people at a lower cost because of ________.

A) device connectivity B) new AI techniques C) cloud computing D) faster PCs E) the availability of large data sets

73)

74) An OLAP report has measures and dimensions. Which of the following is an example of a dimension?

A) total sales B) average cost C) sales region D) average sales E) average net sales

74)

75) All of the following are sources Watson's acquires content except ________.

A) databases B) dictionaries C) reports D) literature E) from questions

75)

76) All of the following are benefits of artificial intelligence except ________.

A) enable smart devices with new capabilities B) create new services C) increase costs D) increase productivity E) find unique solutions for age-old problems

76)

77) A(n) ________ is a computing system modelled after the human brain that is used to predict values and make classifications.

A) expert system B) artificial intelligence C) online analytical processing (OLAP) cube D) neural network E) data warehouse

77)

78) OLAP stands for ________.

A) online analytical processing B) object-based lead analysis procedure C) optimal linear analytical processing D) organizational lead analysis process E) object-oriented analytical protocol

78)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

79) It is better to have data with too coarse a granularity than too fine.

79)

80) Data mart is another term used for a data warehouse.

80)

12

81) Push publishing can deliver results according to a schedule or as a result of an event or particular data condition.

81)

82) OLAP provides the ability to sum, count, average, and perform other simple arithmetic operations on groups of data.

82)

83) Currently we have strong artificial intelligence (AI).

83)

84) A robotic fast-food worker is far-fetched and something that may occur far in the future.

84)

85) A data mart is larger than a data warehouse.

85)

86) A retailer can use purchasing patterns to determine the likelihood of someone being pregnant.

86)

87) Hadoop is an open-source program supported by the Apache Foundation that implements MapReduce on potentially thousands of computers.

87)

88) Data warehouses may include data that is purchased from outside sources.

88)

89) Granularity is a term that refers to the level of detail represented by the data.

89)

90) Business intelligence (BI) systems have five standard components called hardware, software, data, procedures and people.

90)

91) Artificial intelligence is the ability of a machine to simulate all human tasks.

91)

92) By 2031, data storage, processing power, and network speeds will have increased exponentially.

92)

93) The three primary activities in the business intelligence (BI) process are to acquire data, perform analysis, and publish results.

93)

94) An organization can use machine learning to detect spam.

94)

95) A business intelligence (BI) server extends alert/RSS functionality to support user subscriptions.

95)

96) An advantage of OLAP reports is their ability to let users drill down into the data.

96)

97) Cluster analysis is used to identify groups of entities that have similar characteristics.

97)

98) In the future, jobs will be given to robots with IQs higher than 90% of the U.S. population.

98)

99) Business leaders need to understand the broader implications of using automated machines.

99)

100) Operational data is structured for fast and reliable transaction processing.

100)

101) Data mining is the application of statistical techniques to find patterns and relationships among data for classification and prediction.

101)

13

102) A corpus of knowledge is a large set of related data and texts.

102)

103) As a business professional, you need to become an expert in artificial intelligence (AI) to use it.

103)

104) Only desktops can be connected smart devices.

104)

105) In an unsupervised data mining technique, analysts do not create a model or hypothesis before running the analysis.

105)

106) Dynamic reports are business intelligence (BI) documents that are updated at the time they are requested.

106)

107) Knowledge management was done only after the advent of social media.

107)

108) In the future, robots will do jobs most people would prefer go away.

108)

109) An OLAP cube and an OLAP report are the same thing.

109)

110) For BI to be actionable, it must be published to the right user at the right time.

110)

111) Deep learning has greatly increased the accuracy and practical usefulness of artificial intelligence.

111)

112) In unsupervised data mining, analysts create a hypothesis before the analysis and then check their hypothesis after the analysis.

112)

113) Artificial intelligence research began in the 1990s.

113)

114) Regression analysis measures the effect of a set of variables on another variable.

114)

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

115) Describe deep learning.

116) List at least five productivity gains from using automation.

117) What are MapReduce and Hadoop?

118) What is a reporting application? Name five basic reporting operations.

119) Briefly describe how IBM's Watson works.

120) Describe how humans can survive the workplace shift caused by AI. 121) Explain the concept of RFM analysis.

122) Name and describe the three primary activities in the business intelligence (BI) process.

123) List at least four out of the six forces driving advances in artificial innovation developments.

14

124) List at least three examples of machine learning.

125) Differentiate between unsupervised and supervised data mining.

126) Explain knowledge management and its primary benefits.

127) Define business intelligence (BI) and BI systems.

128) Explain the difference between static and dynamic reports.

129) Describe the management functions of business intelligence (BI) servers.

130) What are the major differences between a data lake and a data mart?

131) Describe the features of a data mart.

132) Describe the functions of data warehouses and the need for them.

133) Describe how AI has caused a number of jobs to not exist anymore but has caused a number of new jobs to be created.

134) What is OLAP? Explain its features.

15

Answer Key Testname: C3

1) A 2) B 3) A 4) A 5) B 6) B 7) D 8) C 9) E 10) E 11) E 12) A 13) D 14) E 15) A 16) D 17) A 18) D 19) B 20) C 21) C 22) E 23) A 24) D 25) A 26) A 27) C 28) E 29) A 30) A 31) A 32) D 33) C 34) B 35) A 36) C 37) D 38) C 39) D 40) E 41) B 42) A 43) E 44) E 45) B 46) E 47) A 48) C 49) E 50) D 16

Answer Key Testname: C3

51) E 52) A 53) D 54) B 55) D 56) B 57) C 58) B 59) A 60) C 61) D 62) B 63) B 64) C 65) E 66) A 67) E 68) D 69) B 70) E 71) B 72) A 73) C 74) C 75) E 76) C 77) D 78) A 79) FALSE 80) FALSE 81) TRUE 82) TRUE 83) FALSE 84) FALSE 85) FALSE 86) TRUE 87) TRUE 88) TRUE 89) TRUE 90) TRUE 91) TRUE 92) TRUE 93) TRUE 94) TRUE 95) TRUE 96) TRUE 97) TRUE 98) TRUE 99) TRUE 100) TRUE 17

Answer Key Testname: C3

101) TRUE 102) TRUE 103) FALSE 104) FALSE 105) TRUE 106) TRUE 107) FALSE 108) TRUE 109) TRUE 110) TRUE 111) TRUE 112) FALSE 113) FALSE 114) TRUE 115) A neural network is a computing system modelled after the human brain that is used to predict values and make classifications. This multilayered neural network technique was applied to learning tasks and is now commonly known as deep learning 116) The productivity gains from automation include: can work 24 hours, 365 days; immediately trained, no "onboarding"; no breaks during work hours; no impaired workers; no time-wasting activities; no accidents or injuries; no arguments with other employees or managers; no scheduling issues; all holiday shifts covered; and more accurate, precise, and consistent.

117) MapReduce is a technique for harnessing the power of thousands of computers working in parallel. The basic idea is that the BigData collection is broken into pieces, and hundreds or thousands of independent processors search these pieces for something of interest. Hadoop is an open-source program supported by the Apache Foundation that implements MapReduce on potentially thousands of computers. Hadoop could drive the process of finding and counting the Google search terms, but Google uses its own proprietary version of MapReduce to do so, instead.

Hadoop includes a query language titled Pig. 118) A reporting application is a BI application that inputs data from one or more sources and applies reporting operations to that data to produce business intelligence.

Reporting applications produce business intelligence using five basic operations: • Sorting • Filtering • Grouping • Calculating • Formatting 119) First, Watson acquires content from sources like dictionaries, encyclopedias, literature, reports and databases. It extracts valuable pieces of data from structured and semi-structured data sources and adds them to a corpus of knowledge. Next Watson generates hypothesis about what might be the right answer to the question looking for evidence that supports each answer. Final Watson, merges all of the scored candidates, identifies the best possible answer, and estimates the probability that the answer is correct.

120) First, human workers need to develop skills that machines can't do. Second, lots of human workers will be needed to take care of these new machines. Even the best AIs need training. AI-enabled machines will also need humans for the foreseeable future because they lack something humans have—instincts. Machines need humans to survive. They also need humans to help them to improve.

18

Answer Key Testname: C3

121) RFM analysis, a technique readily implemented with basic reporting operations, is used to analyze and rank customers according to their purchasing patterns. RFM considers how recently (R) a customer has ordered, how frequently (F) a customer ordered, and how much money (M) the customer has spent.

To produce an RFM score, the RFM reporting tool first sorts customer purchase records by the date of their most recent (R) purchase. In a common form of this analysis, the tool then divides the customers into five groups and gives customers in each group a score of 5 to 1. The 20 percent of the customers having the most recent orders are given an R score of 5, the 20 percent of the customers having the next most recent orders are given an R score of 4, and so forth, down to the last 20 percent, who are given an R score of 1. The tool then re-sorts the customers on the basis of how frequently they order. The 20 percent of the customers who order most frequently are given an F score of 5, the next 20 percent of most frequently ordering customers are given a score of 4, and so forth, down to the least frequently ordering customers, who are given an F score of 1. Finally, the tool sorts the customers again according to the amount spent on their orders. The 20 percent who have ordered the most expensive items are given an M score of 5, the next 20 percent are given an M score of 4, and so forth, down to the 20 percent who spend the least, who are given an M score of 1.

122) The three primary activities in the BI process are: acquire data, perform analysis, and publish results. Data acquisition is the process of obtaining, cleaning, organizing, relating, and cataloging source data. BI analysis is the process of creating business intelligence. The four fundamental categories of BI analysis are reporting, data mining, BigData, and knowledge management. Publish results is the process of delivering business intelligence to the knowledge workers who need it. Push publishing delivers business intelligence to users without any request from the users; the BI results are delivered according to a schedule or as a result of an event or particular data condition. Pull publishing requires the user to request BI results. Publishing media include print as well as online content delivered via Web servers, specialized Web servers known as report servers, and BI results that are sent via automation to other programs.

123) 1) Increases in computing power. 2) Availability of large data sets for training. 3) Cloud scalability and applications. 4) Increased device connectivity. 5) New AI techniques. 6) practical AI applications.

124) Answers may vary. Machine learning can be used in a wide variety of tasks including college admissions decisions, credit approvals, fraud detection, search result optimization, and dating site matching. It can use other algorithms (like decision trees, linear regression, and logistic regression) depending on the type of data being analyzed. It can also use neural networks to predict values and make classifications such as "good prospect" or "poor prospect" based on a complicated set of possibly nonlinear equations.

125) Data mining techniques fall into two broad categories: unsupervised and supervised. With unsupervised data mining, analysts do not create a model or hypothesis before running the analysis. Instead, they apply a data mining application to the data and observe the results. With this method, analysts create hypotheses after the analysis, in order to explain the patterns found. With supervised data mining, data miners develop a model prior to the analysis and apply statistical techniques to data to estimate parameters of the model.

126) Knowledge management (KM) is the process of creating value from intellectual capital and sharing that knowledge with employees, managers, suppliers, customers, and others who need that capital.

KM benefits organizations in two fundamental ways: • Improve process quality • Increase team strength 127) Business intelligence (BI) systems are information systems that process operational, social, and other data to identify patterns, relationships, and trends for use by business professionals and other knowledge workers. These patterns, relationships, trends, and predictions are referred to as business intelligence. As information systems, BI systems have the five standard components: hardware, software, data, procedures, and people. The software component of a BI system is called a BI application.

128) Static reports are business intelligence (BI) documents that are fixed at the time of creation and do not change. A printed sales analysis is an example of a static report. In the BI context, most static reports are published as PDF documents.

Dynamic reports are BI documents that are updated at the time they are requested. A sales report that is current at the time the user accessed it on a Web server is a dynamic report. In almost all cases, publishing a dynamic report requires the BI application to access a database or other data source at the time the report is delivered to the user.

19

Answer Key Testname: C3

129) Business intelligence servers provide two major functions: management and delivery. The management function maintains metadata about the authorized allocation of BI results to users. The BI server tracks what results are available, what users are authorized to view those results, and the schedule upon which the results are provided to the authorized users. It adjusts allocations as available results change and users come and go. All management data needed by any of the BI servers is stored in metadata. The amount and complexity of such data depends, of course, on the functionality of the BI server.

130) Data lakes can contain more types of data than a data warehouse, and it can store them in their raw unstructured forms. Data lakes can also store real-time data from smart devices, websites, and mobile applications. Data lakes are useful for storing large amounts of data to be later used by data scientists in machine learning and deep learning (discussed later in this chapter). Analysis of data from data lakes can provide new insights that can't be found in traditional data warehouses that are traditionally focused on reporting, trends, and answering operational questions.

131) A data mart is a data collection, smaller than the data warehouse that addresses the needs of a particular department or functional area of the business. If the data warehouse is the distributor in a supply chain, then a data mart is like a retail store in a supply chain. Users in the data mart obtain data that pertain to a particular business function from the data warehouse. Such users do not have the data management expertise that data warehouse employees have, but they are knowledgeable analysts for a given business function.

132) Operational data is structured for fast and reliable transaction processing. It is seldom structured in a way that readily supports BI analysis. Finally, BI analyses can require considerable processing; placing BI applications on operational servers can dramatically reduce system performance. Hence, most organizations extract operational data for BI processing. For small organizations, the extraction may be as simple as an Access database. The larger organizations typically create and staff a group of people who manage and run a data warehouse, which is a facility for managing an organization's BI data. The functions of a data warehouse are to: • Obtain data • Cleanse data • Organize and relate data • Catalog data 133) Imagine banning online banking because it might cost tellers their jobs or banning Netflix because it might reduce the demand for labor at local brick-and-mortar video stores. That may sound silly to most people, but innovations have caused substantial shifts in the workforce. They always have. There's a long list of jobs that once existed that don't anymore. But there's also a list of new jobs that were created because of technological innovations.

134) Online analytical processing (OLAP) is an important reporting application. It is more generic than RFM. OLAP provides the ability to sum, count, average, and perform other simple arithmetic operations on groups of data. The remarkable characteristic of OLAP reports is that they are dynamic. The viewer of the report can change the report's format, hence the term online. An OLAP report has measures and dimensions. A measure is the data item of interest. It is the item that is to be summed or averaged or otherwise processed in the OLAP report. Total sales, average sales, and average cost are examples of measures. A dimension is a characteristic of a measure. Purchase date, customer type, customer location, and sales region are all examples of dimensions. With an OLAP report, it is possible to drill down into the data. This term means to further divide the data into more detail.

20

Exam Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Mobile systems offer the potential of ________, which is data delivered to the user at the precise time it is needed.

A) clean data B) cluster data C) convenient data D) just-in-time data E) granular data

1)

2) Which of the following operating systems was designed by Apple?

A) Unix B) Linux C) Ubuntu D) Mac OS

2)

E) Android

3) Which of the following is an example of a closed source project?

A) Android B) Ubuntu C) Microsoft Office D) Apache E) Native Client

3)

4) ________ is considered a tablet.

A) Mac Pro B) iPhone 8 Plus C) Samsung Galaxy D) Dell Poweredge E) Kindle Fire

4)

5) In ________ process, a server hosts many versions of desktop operating systems.

A) desktop virtualization B) VLAN C) application virtualization D) PC virtualization E) server virtualization

5)

6) ________ reality is the altering of reality by overlaying digital information on real-world objects.

A) Mixed B) Enhanced C) Actual D) Virtual E) Augmented

6)

7) Bits are grouped into 8-bit chunks called ________.

A) nibbles B) switches C) kilobytes

7)

1

D) strings

E) bytes

8) Which of the following statements is TRUE about self-driving cars?

A) will increase the number of DUIs B) reduced car insurance cost C) increased fuel consumption D) cause more accidents E) expensive and complex

8)

9) Which of the following memory devices is volatile in nature?

A) cache memory B) optical disk C) magnetic disk D) erasable programmable read only memory (EPROM) E) SSD

9)

10) Bits are used for computer data because they ________.

A) can have more than two values at a time B) have an infinite number of states C) are represented exclusively as letters of the alphabet D) represent the orientation of a nonoptical media E) are easy to represent physically

10)

11) Which of the following is an example of an open-source desktop operating system?

A) Ubuntu B) Apache C) IIS D) MySQL E) Microsoft Windows

11)

12) A ________ is a small, lightweight, power-conserving, computing device that is capable of wireless connectivity.

A) server B) server cluster C) mainframe computer D) mobile device E) PC

12)

13) The limits on creating native applications are usually ________, not technological.

A) based on an executive board decision B) budgetary C) in finding skilled programmers D) based on requirements E) based on complexity

13)

14) Which of the following is the most controlling BYOD policy?

A) For the organization to sniff employees' mobile traffic.

B) For an organization to declare that it owns any device that employees connect to its network.

C) For the company to offer coffee shop style networking.

D) If the employee signs on to the company's network, they are financially responsible for any damage done.

E) The company creates special logins for BYOD.

14)

2

15) Melissa is a senior accountant at a consulting firm. She brings to her manager's notice the considerable amount of time that is wasted when accounting tasks are performed manually, and proposes that the department automates these tasks. Melissa's accounting department is in need of a(n) ________.

A) operating system B) application software C) network connection D) system software E) firmware

15)

16) Which of the following devices is an example of a storage hardware device?

A) central processing unit B) random access memory C) barcode scanner D) the system bus E) optical disk

16)

17) Which of the following is a characteristic of volatile memory?

A) Processing of data is very slow.

B) Contents are lost when power is off.

C) Files are stored permanently.

D) Processor heats up during the operation.

E) It should be purged at least once a year.

17)

18) ________ applications are programs that are written to use a particular operating system.

A) Thin-client B) Browser C) Native D) Enterprise E) Web

18)

19) ________ is the altering of reality by overlaying digital information on real-world objects.

A) Reality B) Augmented reality (AR) C) Mixed reality (MR) D) Virtual reality (VR) E) Sense of presence

19)

20) Rebecca is one of the few reliable programmers of her organization who is authorized to work on a closed source project. The project will be especially useful to track the progress of outsourced activities. Which of the following statements is most likely to be TRUE of Rebecca's project?

A) The source code will eventually be made open source.

B) Only trusted programmers will be allowed to make changes to the project.

C) Only users and developers will be allowed to alter the source code of the project.

D) Programmers could alter the source code based on their interests and goals.

E) Anyone could obtain the source code for the project.

20)

3

21) Which of the following statements is TRUE about native applications?

A) They only run on the operating system for which they are programmed.

B) They can be developed by less skilled, lesser-paid employees.

C) The cost of native applications is low.

D) They are run exclusively through a Web browser.

E) The limits on native applications are usually technological, not budgetary.

21)

22) Which of the following terms refers to a collection of servers?

A) server farm B) parallel nodes C) firmware D) shareware E) server database

22)

23) Which of the following is an example of an application program?

A) Linux B) Unix C) Microsoft Word D) Dell E) Windows

23)

24) Which of the following statements is TRUE about operating systems?

A) The server operating system Linux is gradually being replaced by Unix.

B) Android is a mobile operating system licensed by Apple.

C) Unix is the most popular client operating system.

D) iOS is the most popular server operating system.

E) Nonmobile client operating systems are used on personal computers.

24)

25) Ronald runs both Windows 10 and Linux on his desktop computer. This process is called ________.

A) server virtualization B) PC virtualization C) BIOS D) cloud computing E) application virtualization

25)

26) A ________ is equivalent to 1,024 kilobytes.

A) terabyte B) zettabyte C) gigabyte

26)

27) Which of the following is a characteristic of smart devices?

A) have lower bandwidth B) consume less energy C) have less processing power D) require microprocessors and new protocols E) lack Internet connectivity

4

D) megabyte

E) kilobyte

27)

28) Carter is the Web designer for an open source project. He has created a program that facilitates the easy collation of data for a large-scale logistics firm. Which of the following is TRUE of the source code for Carter's program?

A) It is available only to carefully vetted contractors.

B) It is less stable and platform dependent.

C) It is highly protected and obtained only by having a license.

D) It is available to the public.

E) It cannot be compiled.

28)

29) Which of the following is an example of a mobile device?

A) VoIP phone B) a mainframe C) a smartphone D) an Xbox E) a desktop computer

29)

30) Which of the following operating systems is used by Apple?

A) Symbian B) Windows OS C) Android D) iOS E) AIX

30)

31) Web applications are typically limited by the capabilities of the ________.

A) browser B) programming language C) motherboard D) hardware E) operating system

31)

32) Jerry wants to save his company money. He decides to move to open source software for his word processing needs. Jerry then downloads ________.

A) Apache B) Microsoft Office C) LibreOffice D) Firefox E) Android

32)

33) ________ is the combination of the real physical world with interactive virtual images or objects.

A) Reality B) Augmented reality (AR) C) Mixed reality (MR) D) Virtual reality (VR) E) Sense of presence

33)

34) ________ are digital-only currencies.

A) Online payments B) E-checks C) E-wallets D) Debit cards E) Cryptocurrencies

34)

5

35) Linux applications are developed using ________ programming language.

A) C# B) Java C) VB.NET D) Objective-C E) Swift

35)

36) Which of the following is an example of vertical-market application software?

A) inventory tracking software for an automobile manufacturer B) Tally software that is used to maintain business and personal accounts C) Adobe suite, used by graphic designers D) YouTube E) Microsoft PowerPoint, used to create presentations

36)

37) All of the following are benefits to using cryptocurrencies except ________.

A) it cannot be seized by the government B) there are no taxes C) it is faster and easier to use than traditional payment methods D) it is insured by the Federal Reserve Bank E) there is protection from inflation

37)

38) Main memory is also known as ________.

A) read-only memory B) the system bus C) random access memory D) optical memory E) cache memory

38)

39) Which of the following statements is TRUE about firmware?

A) Users do not need to load firmware into a device's memory.

B) Firmware is another name for Linux.

C) Firmware is the same as cache memory.

D) Firmware cannot be changed or upgraded.

E) The software is not coded like other software.

39)

40) Machine code ________.

A) is understandable by humans B) is written by humans C) cannot be modified by humans D) is never greater than 256 KB per application E) cannot be processed by computers

40)

41) Which of the following statements refers to server virtualization?

A) a personal computer, such as a desktop or portable computer, that hosts several different operating systems B) a server that hosts many versions of desktop operating systems C) a storage area that loses its contents when the power is off D) a server computer that hosts one or more other server computers E) a server can connect to multiple networks at the same time

41)

6

42) ________ is the decentralized public ledgering system used to record cryptocurrency transactions.

A) Bitcoin B) Satoshi C) Blockchain D) Inflation E) Fiat currencies

42)

43) Which of the following is a nonmobile client operating system?

A) iOS B) Windows Server C) Blackberry OS D) macOS E) Android

43)

44) 1 PB is equivalent to ________ terabytes.

A) 1,000 B) 102.4

C) 100,000

D) 10,240

E) 1,024

44)

45) Source code is computer code ________.

A) that cannot be modified B) that cannot be sold publicly C) that is represented as bits and bytes D) that is not understandable by humans E) that is written by humans

45)

46) Which of the following refers to a small, portable storage device that can be used to back up data and transfer it from one computer to another?

A) mouse B) Bluetooth speaker C) USB flash drive D) projector E) barcode scanner

46)

47) A mobile device called a(n) ________ combines the functionality of a smartphone with the larger screen of a tablet.

A) server B) e-book reader C) big personal computer D) phablet E) iPhone 8

47)

48) Java, C#, and VB.NET are examples of ________.

A) thin-client applications B) client operating systems C) object-oriented languages D) structured queries E) hyper-text languages

48)

7

49) Which of the following hardware developments allow objects to connect to a network and share data with any other application, service, or device?

A) automated guided vehicles B) visual mapping C) 3D printing D) Internet of things (IoT) E) self-driving cars

49)

50) All of the following are disruptive forces to change business except ________.

A) digital reality devices B) self-driving cars C) Internet of Things D) cryptocurrencies E) 2D printing

50)

51) Server infrastructure is delivered as a service via the Internet and often referred to as ________.

A) secondary memory B) SSD storage C) main memory D) the cloud E) computer hardware

51)

52) Mac OS and iOS applications are constructed using ________ programming language.

A) VB.NET B) Objective-C C) Java D) C# E) HTML

52)

53) DenTimes, a software package installed in hospitals, is used to schedule appointments and bill patients. DenTimes is an example of ________.

A) vertical-market application software B) horizontal-market application software C) adware D) firmware E) Web application

53)

54) Which of the following mobile operating systems is licensed by Google?

A) PCLinuxOS B) Symbian C) Blackberry OS D) Windows 10 E) Android

54)

55) In virtualization, hosted operating systems are called virtual ________.

A) applications B) machines C) programs D) desktops E) operating systems

55)

8

56) Virtualization is the process by which ________.

A) a single operating system is shared by multiple users B) one physical computer hosts many different virtual computers within it C) many computers are used to control a server D) a single server is used to host the operations of a workstation E) a single operating system is licensed for multiple computers

56)

57) Adobe's Acrobat, Photoshop, and PageMaker are examples of ________.

A) vertical-market application software B) operating systems C) firmware D) drivers E) horizontal-market application software

57)

58) Clark's microbiology report is due the next day. Being short on time, he collects most of the information for his report from an open-source Web browser. In this case, which of the following has Clark used to complete his report?

A) Edge B) Apache C) Firefox D) IIS E) Ubuntu

58)

59) Android applications are developed using ________ programming language.

A) Java B) VB.NET C) Swift D) Objective-C E) C#

59)

60) Which of the following is an example of nonvolatile memory?

A) cache memory B) main memory C) the system bus D) optical disk E) static random access memory (SRAM)

60)

61) Linux is an example of a(n) ________.

A) workstation client B) third-party encryption software C) mobile operating system D) open source operating system E) user community

61)

62) Which of the following is an example of storage hardware in computers?

A) inkjet printer B) plotter C) projector D) magnetic disk E) Web camera

62)

63) Which size of main memory is the largest?

A) kilobyte B) exabyte C) petabyte

63)

9

D) terabyte

E) gigabyte

64) Which of the following companies produce CPU chips?

A) Microsoft B) Toshiba C) Apple D) American Micro Devices E) Nvidia 65) macOS is written in ________.

A) Java B) Android

C) C++

64)

D) C#

E) Swift

65)

66) Toby has lost valuable data on his computer a number of times due to system crashes caused by viruses. He decides to invest in a powerful antivirus program. When Toby buys the program, he will actually be buying the software ________.

A) trademark B) copyright C) license D) code E) patent

66)

67) ________ is a completely computer-generated virtual world with interactive digital objects.

A) Reality B) Augmented reality (AR) C) Mixed reality (MR) D) Virtual reality (VR) E) Sense of presence

67)

68) What is the impact of mobile systems growth on the procedures under the five components model?

A) Always on, always at work B) Personal mobile devices at work C) An increase in independent contractors D) Jobs for mobile device sales E) Compact interfaces

68)

69) Users in motion, wireless connectivity, and a cloud-based resource are the elements in a ________.

A) mobile system B) virtual private network C) client operating system D) native application E) nonmobile system

69)

70) A ________ is also called "the brain" of the computer.

A) motherboard B) thumb drive C) CMOS D) central processing unit E) network card

70)

71) ________ is installed into special, read-only memory of devices like printers and print servers or devices used for various types of communication.

A) Vertical-market software B) AIX kernel C) Firmware D) Application software E) Spyware

71)

10

72) Which of the following is an advantage to an organization if its bring your own device (BYOD) policy offers wireless network to mobile devices?

A) The internal network will be inherently more secure.

B) Employees independently manage their own devices.

C) The policy appears to be permissive without actually being so.

D) Employees gain public access from any device, not just mobile devices.

E) The organization can sniff employees' mobile traffic.

72)

73) The CPU stores the results of computations in ________.

A) floppy disks B) main memory C) SSD storage D) network cards E) secondary memory

73)

74) Reed Technologies has hired certified programmers to create an application for its Web site. The application would run inside a browser and support graphics and animation. Which of the following will the programmers use to develop this application?

A) HTML5 B) C++ C) Java D) Objective-C E) C#

74)

75) ________ is a version of Unix that was developed by an open source community.

A) Linux B) Symbian OS C) SPX D) Mac OS E) Android

75)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

76) A (bring your own device) BYOD policy is a statement concerning employees' permissions and responsibilities when they use their own device for organizational business.

76)

77) The minimization of menu bars, status lines, and other visual overhead is a key feature of modern-style applications.

77)

78) The cache and main memory are nonvolatile, meaning their contents survive when power is off.

78)

79) If a company wants to avoid a server commitment to Microsoft, they can choose Linux.

79)

80) Object-oriented languages cannot be used to create difficult and complex applications.

80)

81) Open source succeeds because of collaboration.

81)

82) Linux is high-priced and closed source software developed by Google.

82)

83) Symbian is a popular operating system used on devices like iPhone, iPad, and iPod Touch.

83)

11

84) The main memory of a computer is also called random access memory (RAM).

84)

85) Cache memory is also called "the brain" of a computer.

85)

86) An operating system is a program that controls a computer's resources.

86)

87) Programmers are not allowed to alter or add to an open source code.

87)

88) Linux applications are constructed using Objective-C and VB.NET languages.

88)

89) The term open source means that the source code of the program is not available to the public.

89)

90) Mobile use is favored by the elderly.

90)

91) Web applications are programs that are written to use a particular operating system.

91)

92) A client is a computer that is designed to support processing from many remote computers and users.

92)

93) Thin-client applications can seldom run within a computer browser.

93)

94) Horizontal-market applications are developed for specific, unique needs of an industry.

94)

95) Source code is computer code as written by humans and understandable by humans.

95)

96) Some governments are launching their own cryptocurrencies.

96)

97) Source code is made available from an open source project's Web site to any user.

97)

98) The smallest unit of a bit coin is the satoshi.

98)

99) Anyone can upgrade or change firmware.

99)

100) Web applications can be developed by professional programmers, technically oriented Web developers, or business professionals.

100)

101) In the future, your house will be so smart it will analyze you.

101)

102) Native applications are developed by professional programmers only.

102)

103) Sense of presence is the illusion that a virtual experience is real.

103)

104) Quad-processor computers have two CPUs.

104)

105) Mobile devices cannot be connected through the cloud.

105)

106) Nike has used 3D printing to create a cleat plate for a shoe.

106)

12

107) A computer with two CPUs is called a(n) dual-core computer.

107)

108) As of 2018, 95% of people in the United States owned a mobile phone.

108)

109) Some high-end computers have 16 or more CPUs.

109)

110) M-commerce is another name for e-commerce?

110)

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

111) Briefly describe the nonmobile client operating system Microsoft Windows.

112) Describe how native applications are developed.

113) Define virtualization and list its types.

114) What are some of the advantages and disadvantages of using drones as a method of delivering goods.

115) What are some risks of cryptocurrencies?

116) Describe the various hardware components and provide examples.

117) Why are mobile systems important?

118) Describe how self-driving cars can threaten and disrupt established businesses.

119) What are the disadvantages of employee use of mobile systems at work?

120) What is the future of 3D printing?

121) Distinguish between open source and closed source programs.

122) List the various categories of application software.

123) Describe Web development languages.

124) Explain the two types of application programs.

125) Define the terms personal computers, servers, and server farms.

126) Describe the difference between volatile and nonvolatile memory.

13

Answer Key Testname: C4

1) D 2) D 3) C 4) E 5) A 6) E 7) E 8) B 9) A 10) E 11) A 12) D 13) B 14) B 15) B 16) E 17) B 18) C 19) B 20) B 21) A 22) A 23) C 24) E 25) B 26) D 27) D 28) D 29) C 30) D 31) A 32) C 33) C 34) E 35) B 36) A 37) D 38) C 39) A 40) C 41) D 42) C 43) D 44) E 45) E 46) C 47) D 48) C 49) D 50) E 14

Answer Key Testname: C4

51) D 52) B 53) A 54) E 55) B 56) B 57) E 58) C 59) A 60) D 61) D 62) D 63) B 64) D 65) E 66) C 67) D 68) A 69) A 70) D 71) C 72) E 73) B 74) A 75) A 76) TRUE 77) TRUE 78) FALSE 79) TRUE 80) FALSE 81) TRUE 82) FALSE 83) FALSE 84) TRUE 85) FALSE 86) TRUE 87) FALSE 88) FALSE 89) FALSE 90) FALSE 91) FALSE 92) FALSE 93) FALSE 94) FALSE 95) TRUE 96) TRUE 97) TRUE 98) TRUE 99) FALSE 100) TRUE 15

Answer Key Testname: C4

101) TRUE 102) TRUE 103) TRUE 104) FALSE 105) FALSE 106) TRUE 107) FALSE 108) TRUE 109) TRUE 110) TRUE 111) Nonmobile client operating systems are used on personal computers. The most popular is Microsoft Windows. Some version of Windows resides on more than 85 percent of the world's desktops, and, if just business users are considered, the figure is more than 95 percent. The most recent client version of Windows is Windows 10, a major rewrite of prior versions. Windows 8 was distinguished by what Microsoft calls modern-style applications. These applications, now carried over into Windows 10, are touch-screen oriented and provide context-sensitive, pop-up menus. They can also be used with a mouse and keyboard. Microsoft claims that modern-style applications work just as well on portable, mobile devices such as tablet computers as they do on desktop computers. One key feature of modern-style applications is the minimization of menu bars, status lines, and other visual overhead.

112) Native applications are developed using serious, heavy-duty, professional programming languages. Mac OS and iOS applications are constructed using Objective-C, Linux (Android) applications are constructed using Java, and Windows applications are constructed using C#, VB.NET, C++ and others. All of these languages are object-oriented, which means they can be used to create difficult, complex applications, and, if used properly, will result in high-performance code that is easy to alter when requirements change. Object-oriented languages can only be used by professional programmers who have devoted years to learning object-oriented design and coding skills.

113) Virtualization is the process by which one physical computer hosts many different virtual computers within it. One operating system, called the host operating system, runs one or more operating systems as applications. Those hosted operating systems are called virtual machines (vm). Each virtual machine has disk space and other resources allocated to it. The host operating system controls the activities of the virtual machines it hosts to prevent them from interfering with one another. With virtualization, each vm is able to operate exactly the same as it would if it were operating in a stand-alone, nonvirtual environment.

There are three types of virtualization: PC virtualization—With PC virtualization, a personal computer, such as a desktop or laptop, hosts several different operating systems.

Server virtualization—With server virtualization, a server computer hosts one, or more, other server computers.

Desktop virtualization—With desktop virtualization, a server hosts many versions of desktop operating systems.

114) While critics are quick to point out potential disadvantages of drone delivery, the cost savings and faster delivery times are huge. Consider Amazon's push for drone delivery. McKinsey & Company estimate that it costs $4 to ship a package, and Amazon's shipping costs for 2019 were $38 billion. Drone delivery is expected to reduce Amazon's shipping costs by 50 percent. Amazon would use less fuel, buy 19 fewer delivery vehicles, and hire fewer drivers.

115) There are risks to cryptocurrencies, too. The value of a cryptocurrency can drop to zero if enough big holders of the currency sell their coins. Bitcoin, for example, derives its value because enough people perceive it as valuable. There is nothing like gold backing its value, and it is not government approved legal tender. It's all perception. That can lead to extreme price volatility. Bitcoin also suffers from the fact that relatively few businesses accept it as payment, and it initially got a bad reputation for being used by organized crime.

16

Answer Key Testname: C4

116) Hardware consists of electronic components and related gadgetry that input, process, output, and store data according to instructions encoded in computer programs or software. Processing devices include the central processing unit (CPU), which is also called the brain of the computer. The CPU works in conjunction with main memory. The CPU reads data and instructions from memory, and then stores the results of computations in main memory. Main memory is also called RAM, which stands for random access memory. Storage hardware saves data and programs. Magnetic disk is the most common storage device, although optical disks such as CDs and DVDs are also popular. Thumb drives are small, portable storage devices that can be used to back up data and transfer it from one computer to another.

117) Mobile systems are information systems that support users in motion. Mobile systems users access the system from any place—at home, at work, in the car, on the bus, or at the beach—using any smart device, such as a smartphone, tablet, or PC. Mobile systems users move not only geographically, but also from device to device. The user who starts reading a book on an iPad on a bus, continues reading that book on a PC at work, and finishes it on Kindle Fire at home is mobile both geographically and across devices. The major elements in a mobile system are users in motion, mobile devices, wireless connectivity, and a cloud-based resource. A mobile device is a small, lightweight, power-conserving, computing device that is capable of wireless access. Almost all mobile devices have a display and some means for data entry. Mobile devices include smartphones, tablets, personal digital assistants, and small, light laptops. Desktop computers, Xboxes, and large, heavy, power-hungry laptops are not mobile devices.

118) Self-driving cars have the potential to disrupt well-established industries. Self-driving cars may mean fewer cars on the road. Fewer cars on the road may mean fewer cars sold (transportation), fewer auto loans written (finance), fewer automobile insurance policies underwritten (insurance), and fewer parking lots (real estate). If they didn't have to drive, consumers might take more trips by car than by plane or train (transportation). The production of self-driving cars will mean more jobs for engineers, programmers, and systems designers. There will be more computer hardware, sensors, and cameras in the vehicle. Corporations may not completely see the far-reaching effects of self-driving cars on existing industries.

119) Employee use of mobile devices has significant disadvantages. First, there is the real danger of lost or damaged data.

When data is brought into employee-owned computing devices, the organization loses control over where it goes or what happens to it. Also, if an employee loses his or her device, the data goes with it, and when employees leave the organization, the data on their personal devices needs to be deleted somehow. The disadvantages are data loss or damage, loss of control, compatibility problems, risk of infection, and greater support costs.

120) 3D printing is a disruptive force that has the power to change businesses. 3D printing will not only change the competitive landscape but may change the nature of businesses themselves. Nike, for example, used 3D printing to create the world's first 3D-printed cleat plate for a shoe called the Nike Vapor Laser Talon. 3D printers have the potential to affect a broad array of industries beyond sporting equipment. 3D printers can print in more than just plastics. They can print in metals, ceramics, foods, and biological material too. The technology could also be used across the aerospace, defense, automotive, entertainment, and healthcare industries.

121) The term open source means that the source code of the program is available to the public. Source code is computer code as written by humans and understandable by humans. Source code is compiled into machine code that is processed by a computer. Machine code is, in general, not understandable by humans and cannot be modified. In a closed source project, for example Microsoft Office, the source code is highly protected and only available to trusted employees and carefully vetted contractors. The source code is protected like gold in a vault. Only those trusted programmers can make changes to a closed source project. With open source, anyone can obtain the source code from the open source project's Web site. Programmers alter or add to this code depending on their interests and goals. In most cases, programmers can incorporate code they find into their own projects. They may be able to resell those projects depending on the type of license agreement the project uses.

17

Answer Key Testname: C4

122) The three major categories of application software are horizontal-market, vertical-market, and one-of-a-kind application software.

Horizontal-market application software provides capabilities that are common across all organizations and industries.

Word processors, graphics programs, spreadsheets, and presentation programs are all horizontal-market application software. Examples of such software are Microsoft Word, Excel, and PowerPoint. Vertical-market application software serves the needs of a specific industry. Examples of such programs are those used by dental offices to schedule appointments and bill patients, those used by auto mechanics to keep track of customer data and customers' automobile repairs, and those used by parts warehouses to track inventory, purchases, and sales. Vertical applications usually can be altered or customized. One-of-a-kind application software is developed for a specific, unique need.

The department of Internal Revenue Service (IRS) develops such software, for example, because it has needs no other organization has.

123) Web development languages are HTML5, CSS3, and JavaScript. HTML5 is the latest version of HTML. The advantages of this version are support for graphics, animation, 3D drawing, and other sophisticated user experiences. CSS3 is used with HTML5 to specify the appearance of content coded in HTML. JavaScript is a scripting programming language that is much easier to learn than object-oriented languages. It is used to provide the underlying logic of the application.

124) The two types of application programs are native applications and Web applications. Native applications are programs that are written to use a particular operating system. Microsoft Access, for example, will only run on the Windows operating system. Some applications come in multiple versions. For example, there are Windows and Macintosh versions of Microsoft Word. Native applications are also known as thick-client applications.

A Web application is designed to run within a computer browser such as Firefox, Chrome, Opera, and Internet Explorer. Web applications run within the browser and can run on any type of computer. Web applications are also known as thin-client applications.

125) Personal computers (PCs) are classic computing devices that are used by individuals. In the past, PCs were the primary computer used in business. Today, they are gradually being supplanted by tablets and other mobile devices.

A server is a computer that is designed to support processing requests from many remote computers and users. A server is essentially a PC on steroids. A server differs from a PC principally because of what it does.

A server farm is a collection of, typically, thousands of servers. Server farms are often placed in large truck trailers that hold 5,000 servers or more. Typically, a trailer has two large cables coming out of it; one is for power and the other is for data communications. The operator of the farm backs a trailer into a pre-prepared slab, plugs in the power and communications cables, and runs thousands of servers.

126) The cache and main memory are volatile, meaning their contents are lost when power is off. Magnetic and optical disks are nonvolatile, meaning their contents survive when power is off. If you suddenly lose power, the contents of unsaved memory—say, documents that have been altered—will be lost.

18

Exam Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Which of the following data elements is placed higher than records in the database hierarchy?

A) byte B) file C) character D) bit E) field

1)

2) In a database, when data items are inaccurate and inconsistent with one another, it leads to a(n) ________.

A) adaptation conflict B) crow's-foot paradigm C) security problem D) data integrity problem E) data loopback problem

2)

3) Which of the following is the smallest element in a database?

A) byte B) field C) record

3)

D) zetta

E) metadata

4) Why is user involvement critical for database development?

A) The executive board says it is critical.

B) Because they use the system.

C) The data model states it is important.

D) Because users design the system.

E) The design of the database depends on how users view their business environment.

4)

5) Which of the following database administration tasks is related to adaptation?

A) conducting data audit requirements B) managing configuration changes in systems C) monitoring backup procedures D) conducting training for users E) monitoring database performance

5)

6) ________ in an E-R diagram refer to the least number of entities required in a relationship.

A) Foreign keys B) Minimum cardinalities C) Chernozem cardinalities D) Primary keys E) Minimum candidate keys

6)

7) Identify an open source DBMS product.

A) Access B) TableOS C) Oracle Database D) DB2 E) MySQL

7)

1

8) A data model is a ________.

A) logical representation of database data B) collection of isolated databases C) repository of unprocessed data D) set of programs used to retrieve data E) array of data variables

8)

9) In a data model, a(n) ________ is something that a user wants to track.

A) entity B) byte C) primary key D) record E) quark

9)

10) Identify the first step in transforming a data model into a relational database design.

A) normalizing the data and files B) creating data triggers for export C) representing the entity relationships D) creating a table for each entity E) creating foreign keys

10)

11) Charles and Irene are editors at a content development firm. Both of them, unknowingly, are working on the same copy of the annual report. Irene finishes editing the report and saves her copy; Charles saves his report an hour after Irene. Charles's report overwrites Irene's, and her changes are lost. This scenario is an example of the ________.

A) crow's-foot paradigm B) bullwhip effect C) bait-and-switch problem D) lost-update problem E) update query problem

11)

12) A group of similar rows or records is known as ________.

A) a field B) a table C) a prototype D) a cluster E) an attribute

12)

13) Browser applications are thin-client applications that ________.

A) need not be preinstalled on the users' computers B) are processed using VisualBasic and C++ C) do not need to be encrypted D) use COBOL as the standard language for user-side processing E) depend on internal networks and not the Internet to transmit data

13)

14) A primary key in a database is a ________.

A) group of tables or files formed to identify a unique field or row B) column or group of columns that identifies a unique row in a table C) group of rows that identifies a unique table or file D) group of fields or columns that represent metadata E) group of records that identifies similar attribute

14)

2

15) Which of the following is TRUE of single-user databases?

A) The Internet is used to access the DBMS server computer.

B) They use JavaScript for user-side processing.

C) They run on clustered Linux or Unix systems D) The application, the DBMS, and the database all reside on the user's computer.

E) They are displayed and processed using HTML5, CSS3, and JavaScript.

15)

16) All of these are steps to transform a data model into a database design except ________.

A) add additional tables for N:M relationships B) identify results C) use foreign keys D) represent each entity with a table E) entity attributes become table columns

16)

17) The process of normalization constructs tables such that every table has a ________.

A) one-to-one relationship between entities B) specialized graphical query C) single theme D) minimized metadata footprint E) foreign key

17)

18) A data integrity problem will occur only if ________.

A) a database has multiple administrators B) data are duplicated in a database C) the database has too many keys D) there are complex relationships between entities in a database E) the database is very complex

18)

19) Maria creates a relational database to keep track of cars in her repair shop. She stores information about each car in the "vehicle" table, and creates a column labeled "vehicle_ID" where she stores the vehicle VIN number. The "vehicle_ID" column is referred to as a ________.

A) key attribute B) primary key C) foreign key D) secondary key E) functionally dependent record

19)

20) Acelane Inc., unlike its competitors, procures raw material from multiple suppliers. Each supplier in turn supplies raw material to many buyers, including Acelane. This is an example of a(n) ________ relationship.

A) N:M B) 1:N C) M:1 D) 1:1 E) N:1

20)

21) In an E-R diagram, a line between two entities represents a(n) ________.

A) attribute B) branch C) relationship D) identifier E) cardinality

21)

3

22) Brad, a project manager, wants to build a database to integrate information about employees and tasks that they handle. Brad wants to track information such as task name, productivity of an employee on daily basis, and employee name. These aspects that Brad wants to track are called ________.

A) quarks B) entities C) primary keys D) records E) identifiers

22)

23) ________ are the final judges as to what data the database should contain and how the records in that database should be related to one another.

A) Users B) Auditors C) Administrators D) Developers E) Designers

23)

24) In an E-R diagram, a(n) ________ on a line means that at least one entity of that type is required.

A) arrow B) small oval C) wave D) triangular block E) vertical bar

24)

25) Which of the following is an example of a database management system?

A) MS Visio B) BigData C) MS Excel D) Access

25)

E) NoSQL

26) Which of the following is a developmental task of database administration?

A) monitoring backup procedures B) conducting training for users C) managing configuration changes in systems D) testing backup procedures E) evaluating an application design

26)

27) Which of the following is an international standard language for processing a database?

A) Cassandra B) Relational LM C) DB2 D) SQL E) MS Access

27)

28) Which of the following is used to process and display browser database application forms, reports, and queries?

A) html B) DB2 C) C++ D) COBOL E) VisualBasic

28)

4

29) Each entity in a database has a unique attribute called a(n) ________.

A) foreign key B) index field C) prime value D) identifier E) public key

29)

30) Traditional database application programs are ________.

A) thick applications that need to be installed on users' computers B) browser-based and display dynamic content C) written in languages such as HTML5 and JavaScript D) entirely dependent on the database server for application logic E) cloud-based applications

30)

31) Ryan, a database administrator, is in the process of designing his company's database. Which of the following would Ryan have had to create before he began designing?

A) data tunnel outlay B) data model C) data aggregator D) query model E) data application

31)

32) A ________ describes the data and relationships that will be stored in a database.

A) data model B) data application C) data-tree model D) query model E) data aggregator

32)

33) Which of the following notations in an E-R diagram means that the entity is optional and a relationship need not have an entity of that type?

A) vertical bar B) small oval C) arrow D) double line E) triangle

33)

34) The rows in a database are also called ________.

A) files B) fields C) records

34)

D) tables

E) laterals

35) Larry wants to keep track of his vintage vinyl records, the value of each record, and who he lends the records to for parties. Larry should use a ________.

A) bulletin board B) table in Microsoft Word C) spreadsheet D) database E) sticky note

5

35)

36) All of these issues are results of data integrity problems except ________, A) the system will develop a poor reputation B) incorrect results C) the system will give users too much information D) inconsistent results E) users lose confidence in the data 37) The columns in a database are also called ________.

A) verticals B) fields C) files

D) records

36)

E) tables

37)

38) Which of the following is TRUE of in-memory DBMS products?

A) They are low-volume, but high integrity DBMS product.

B) They are a hotbed of development.

C) MongoDB is an in-memory DBMS product.

D) They do not provide ACID transaction support.

E) They support or extend the relational model.

38)

39) The angled lines on the lines representing relationship between two related entities are referred to as ________.

A) switch B) crow's feet C) entities D) foreign keys E) identifiers

39)

40) Why does eHermes want to implement a database system?

A) The customer has requested they implement a database.

B) Because their competitors are doing it.

C) Because the IT department won't do it.

D) To better encrypt the data.

E) To speed up the process of inventorying the new items it receives from sellers.

40)

41) Jed is a database administrator for a mid-sized computer component manufacturer. Part of his duties include managing security, tracking problems, and monitoring the performance of the database. This is an example of Jed's ________ tasks.

A) backup and recovery B) adaptation C) development D) operation E) data audit

41)

42) When using the relational model to represent two tables, one must ________.

A) minimize the number of columns in the second table B) use metadata instead of foreign keys C) add a foreign key to one of the tables D) establish only N:M relationships between the tables E) have more than two primary keys in the model

42)

6

43) Browser-based applications can support traditional queries, but more exciting are ________ queries.

A) drop-down B) static C) menu-driven D) dynamic E) graphical

43)

44) ________ are more stringent for browser-based Internet applications than for traditional ones.

A) Graphical queries B) Multi-user processing applications C) Coding standards D) Security requirements E) Data consistency checks

44)

45) A database is used instead of a spreadsheet when ________.

A) lists involve data with multiple themes B) users do not want to store all data in one place C) structures of data lists are simple D) lists of data involve a single theme E) users have a small amount of data to store

45)

46) Which of the following is TRUE of MySQL? A) It is a paid and proprietary database product.

B) It uses Static Query Language (SQL) to manage a database.

C) It limits databases to 2 TB in size.

D) It is license-free for most applications.

E) It is a Microsoft product.

46)

47) Browser-based applications ________.

A) process queries using C++ B) process queries without using SQL C) can display only static content D) are thick-client applications E) support graphical queries

47)

48) Metadata is/are ________.

A) data that describes data B) error logs of databases C) more important data D) codes used for server-side processing E) data that are encrypted

48)

49) Which of the following is TRUE about the database development process?

A) The database structure is easy to change during the data modeling stage.

B) Changing a relationship from 1:N to N:M in an existing database is a complex and lengthy process.

C) Databases are easier to develop than spreadsheets.

D) User review of the data model is avoided as it is not helpful in data modeling.

E) Normalization is unnecessary for large databases.

49)

7

50) The term ________ implies that either all transactions related to a traditional relational DBMS are processed or none of them are processed.

A) consistent B) isolated C) durable D) atomic E) iconic

50)

51) Browser-based applications ________.

A) need to be preinstalled on the users' computers B) eliminate the need to check for data consistency C) are more vulnerable to security threats than are traditional applications D) run within a corporate network that is protected from the Internet E) do not need to be encrypted

51)

52) Why did eHermes choose to use Microsoft SQL server database instead of Mongo DB to store image information?

A) It was less risky to implement the database in Microsoft SQL. B) The database would be too big for Mongo DB. C) It is difficult to understand Mongo DB. D) They wanted to learn something new.

E) Microsoft SQL was free.

52)

53) Constraints on the minimum number of entities in a relationship are called ________ cardinalities.

A) minimum B) specific C) primary D) critical E) plank

53)

54) Sonya is the database administrator for RedTriangle media. She is responsible for validating the data model to be used by the DBMS, and specifying the database requirements to endure all appropriate user input is considered. This is an example of Sonya's ________ tasks.

A) data audit B) adaptation C) operation D) development E) recovery

54)

55) Relational databases represent relationships using ________.

A) metadata B) primary keys C) file systems D) trees E) foreign keys

55)

56) Columns that are keys to different tables than the ones in which they reside are called ________.

A) nonlocal keys B) internal records C) attributes D) foreign keys E) primary keys

56)

8

57) The modification or deletion of data in a database is an example of ________ operations of a database management system.

A) statistical B) administrative C) processing D) analytical E) technical

57)

58) ________ is the process of converting a data model into tables, relationships, and data constraints.

A) Database querying B) Database aggregation C) Data mining D) Database design E) Database cross modeling

58)

59) eHermes decides to store the URL of the file server location for the images in the ________.

A) database B) spreadsheet C) E-R document D) table of entities E) metadata

59)

60) All of the following are functions of the DBMS except ________.

A) providing tools to administer the database B) creating the database C) processing the database D) getting the users to use the database E) modifying the database

60)

61) ________ is the process of converting a poorly-structured table into two or more well-structured tables.

A) Standardization B) Refactoring C) Normalization D) Optimization E) Banding

61)

62) A(n) ________ is a program used to create, process, and administer a database.

A) operating system driver B) information system C) database system D) operating system E) database management system

62)

9

63) Katrina is a sales representative for an online retailer. She needs to update her customer list with new contact information for five customers. Which of the following elements will help Katrina modify her data?

A) forms B) operations C) reports D) triggers E) queries

63)

64) Entities in a data model have ________ that describe the characteristics of the entity.

A) primary keys B) scribes C) attributes D) characters E) codes

64)

65) Which of the following is TRUE of traditional database application programs?

A) They are cloud-based applications that need not be preinstalled on the users' computers.

B) Application forms, reports, and queries are displayed and processed using a browser application.

C) They are written in object-oriented languages such as C++ and VisualBasic.

D) They are thin-client applications that need not be preinstalled on the users' computers.

E) The application logic is contained in a program on the client-side computer.

65)

66) In a database, ________ are grouped into columns.

A) nibbles B) fields C) records

66)

D) files

E) bytes

67) Which of the following is TRUE of N:M relationships?

A) They connect different data types.

B) They are the same as N:N relationships.

C) They represent minimum cardinalities in a relationship.

D) They are also called one-to-many relationships.

E) They can have more than one entity on each side of the relationship.

67)

68) A ________ is a collection of forms, reports, queries, and programs that serves as an intermediary between users and database data.

A) data bridge B) database application C) database design D) data field E) data model

68)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

69) Metadata refers to special data that describes the structure of a database.

69)

70) Database design is easy and can be explained in a paragraph.

70)

71) Browser applications are thin-client applications that need to be preinstalled on the users' computers.

71)

10

72) A line in an entity-relationship (E-R) diagram is used to represent the relationships between two entities.

72)

73) A foreign key is a key of a different (foreign) table than the one in which it resides.

73)

74) Most traditional databases use the Internet to transmit traffic back and forth between the users' computers and the DBMS server.

74)

75) Single-user databases are an exception to a traditional database because the databases, application, and the DBMS all reside on the user's computer.

75)

76) NoSQL DBMS refer to nonrelational databases that support very high transaction rates processing relatively simple data structures, replicated on many servers in the cloud.

76)

77) The accuracy of a database design is not dependent on the corresponding data model.

77)

78) An identifier is an attribute or a group of attributes whose value is associated with one and only one entity instance.

78)

79) Lists that involve data with multiple themes can be stored in a spreadsheet.

79)

80) A DBMS and database are synonymous terms that can be used interchangeably.

80)

81) Reports refer to the structured presentation of data using sorting, grouping, filtering, and other operations.

81)

82) Locking must be used to coordinate the activities of users in order to prevent the lost-update problem.

82)

83) Managing the impact of database structural changes on applications and users is an operational task for a database administrator.

83)

84) It is to the users advantage to have a working knowledge of database developments.

84)

85) The crow's-foot notation in an E-R diagram shows the maximum number of entities that can be involved in a relationship.

85)

86) Databases that have both primary and foreign keys are called relational databases.

86)

87) The easiest time to change the database structure is after the data modeling stage.

87)

88) SQL is an international standard language for processing a database.

88)

89) A logical representation of database data, called the data model, is constructed by developers after building a database.

89)

90) The lost-update problem can be resolved by implementing single-user database processing.

90)

11

91) One of the functions of a DBMS is to provide tools to assist in the administration of a database.

91)

92) A group of similar rows or records in a table is called a file.

92)

93) The data integrity problem occurs only if data are duplicated.

93)

94) A user must have a valid user account to access and process a database.

94)

95) The purpose of a database is to keep track of lists of data that involve multiple themes.

95)

96) To modify an existing table, a developer can open the metadata form for that table and add a new row of metadata.

96)

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

97) What is the purpose of a database?

98) What is the disadvantage of multiuser processing?

99) What is database administration?

100) Explain the role of users in the database development process.

101) What are traditional database applications?

102) How does normalization resolve the data integrity problem?

103) Define the acronym ACID, and describe why ACID transactions are important.

104) Explain how a database management system processes a database.

105) Define the symbols and terms used in entity-relationship (E-R) diagrams.

106) Describe a database and its elements.

107) Describe entities in the context of data models.

108) What are the steps involved in transforming a data model into a relational database design?

109) Define primary key, foreign key, and metadata.

110) What is a database application?

111) Explain the functioning of browser applications.

112) State the purposes of the four elements of a database application.

12

113) Why does the presence of metadata make databases more useful?

13

Answer Key Testname: C5

1) B 2) D 3) A 4) E 5) B 6) B 7) E 8) A 9) A 10) D 11) D 12) B 13) A 14) B 15) D 16) B 17) C 18) B 19) B 20) A 21) C 22) B 23) A 24) E 25) D 26) E 27) D 28) A 29) D 30) A 31) B 32) A 33) B 34) C 35) D 36) C 37) B 38) E 39) B 40) E 41) D 42) C 43) E 44) D 45) A 46) D 47) E 48) A 49) A 50) D 14

Answer Key Testname: C5

51) C 52) A 53) A 54) D 55) E 56) D 57) C 58) D 59) E 60) D 61) C 62) E 63) A 64) C 65) C 66) E 67) E 68) B 69) TRUE 70) FALSE 71) FALSE 72) TRUE 73) TRUE 74) FALSE 75) TRUE 76) TRUE 77) FALSE 78) TRUE 79) FALSE 80) FALSE 81) TRUE 82) TRUE 83) FALSE 84) TRUE 85) TRUE 86) TRUE 87) FALSE 88) TRUE 89) FALSE 90) FALSE 91) TRUE 92) TRUE 93) TRUE 94) TRUE 95) TRUE 96) TRUE 97) The purpose of a database is to keep track of things. Lists of data involving a single theme can be stored in a spreadsheet; while lists that involve data with multiple themes require a database. Thus, the purpose of a database is to keep track of things that involve more than one theme.

15

Answer Key Testname: C5

98) Most traditional and browser-based Internet applications involve multiple users processing the same database. While such multiuser processing is common, it does pose unique problems. The lost-update problem exemplifies one of the special characteristics of multiuser database processing. To prevent this problem, some type of locking must be used to coordinate the activities of users who know nothing about one another. Locking brings its own set of problems, however, and those problems must be addressed as well.

99) Database administration involves a wide variety of activities. For example, the database management system can be used to set up a security system involving user accounts, passwords, permissions, and limits for processing the database. To provide database security, a user must sign on using a valid user account before she can process the database. In addition to security, DBMS administrative functions include backing up database data, adding structures to improve the performance of database applications, removing data that are no longer wanted or needed, and similar tasks. For important databases, most organizations dedicate one or more employees to the role of database administration.

100) A database is a model of how the users view their business world. This means that the users are the final judges as to what data the database should contain and how the records in that database should be related to one another. Thus, user review of the data model is crucial. When a database is developed, users must carefully review the data model. If they do not understand any aspect of it, they should ask for clarification until they do. Entities must contain all of the data they need to do their jobs, and relationships must accurately reflect their view of the business. If the data model is wrong, the database will be designed incorrectly, and the applications will be difficult to use, if not worthless.

Developers should not proceed with the database design unless the data model is accurate.

101) A traditional database is shared among many users. In that case, the application resides on the users' computers and the database management system and database reside on a server computer. A network, in most cases not the Internet, is used to transmit traffic back and forth between the users' computers and the DBMS server computer. Traditional database application programs are written in object-oriented languages such as C++ and VisualBasic (and even in earlier languages like COBOL). They are thick applications that need to be installed on users' computers. In some cases, all of the application logic is contained in a program on users' computers and the server does nothing except run the DBMS and serve up data.

102) Normalization is the process of converting a poorly-structured table into two or more well-structured tables. If an attribute is entered correctly in one row and incorrectly in another, this leads to a problem called a data integrity problem.

The data integrity problem can occur only if data are duplicated. Because of this, one easy way to eliminate the problem is to eliminate the duplication of data. The general goal of normalization is to construct tables such that every table has a single topic or theme. Database practitioners classify tables into various normal forms according to the kinds of problems they have. Transforming a table into a normal form to remove duplicated data and other problems is called normalizing the table.

103) Traditional relational DBMS products devote considerable code and processing power to support what are termed ACID (atomic, consistent, isolated, durable) transactions. In essence, this acronym means that either all of a transaction is processed or none of it is (atomic), that transactions are processed in the same manner (consistent) whether processed alone or in the presence of millions of other transactions (isolated), and that once a transaction is stored it never goes away—even in the presence of failure (durable). ACID transactions are critical to traditional commercial applications. Even in the presence of machine failure, systems must process both sides of a transaction (i.e. the sell and the buy sides); it cannot process part of a transaction. Also, what it stores today must be stored tomorrow.

104) A function of the DBMS is to process the database. Such processing can be quite complex, but, fundamentally, the DBMS provides applications for four processing operations: to read, insert, modify, or delete data. These operations are requested in application calls upon the DBMS. From a form, when a user enters new or changed data, a computer program behind the form calls the DBMS to make the necessary database changes. From a Web application, a program on the client or on the server calls the DBMS to make the change.

16

Answer Key Testname: C5

105) Database designers use diagrams called entity-relationship (E-R) diagrams. In these diagrams, all of the entities of one type are represented by a single rectangle. Little lines, which are referred to as crow's feet, are shorthand for the multiple lines between these entities. 1:N, one-to-many relationships, and N:M, many-to-many relationships, represent the relationship between entities. The crow's-foot notation shows the maximum number of entities that can be involved in a relationship. They are called the relationship's maximum cardinality, and constraints on minimum requirements are called minimum cardinalities.

106) A database is a self-describing collection of integrated records. A byte is a character of data. In databases, bytes are grouped into columns, which are also called fields. Columns or fields are grouped into rows, which are also called records. Finally, a group of similar rows or records is called a table or a file. A database is thus a collection of tables, relationships among the rows in those tables, and special data called metadata, that describes the structure of the database.

107) An entity is something that the users want to track. Examples of entities are Order, Customer, Salesperson, and Item.

Some entities represent a physical object, such as Item or Salesperson; others represent a logical construct or transaction, such as Order or Contract. Entities have attributes that describe characteristics of the entity. Example attributes of Order are OrderNumber, OrderDate, SubTotal, Tax, Total, and so forth. Entities have an identifier, which is an attribute (or group of attributes) whose value is associated with one, and only one, entity instance. For example, OrderNumber is an identifier of Order, because only one Order instance has a given value of OrderNumber.

108) To transform a data model into a relational database design, a database designer creates a table for each entity. The identifier of the entity becomes the key of the table. Each attribute of the entity then becomes a column of the table.

Next, the resulting tables are normalized so that each table has a single theme followed by representing relationships among the tables that are normalized. This includes adding foreign keys and additional tables for N:M relationships.

109) A primary key is a column or group of columns that identifies a unique row in a table. Columns that are primary keys in a table other than the one in which they reside are called foreign keys. Metadata are data that describe data in the database.

110) A database application is a collection of forms, reports, queries, and application programs that serves as an intermediary between users and database data. Database applications reformat database table data to make it more informative and more easily updated. Application programs also have features that provide security, maintain data consistency, and handle special cases.

111) Browser applications are thin-client applications that need not be preinstalled on the users' computers. In most cases, all of the code for generating and processing the application elements is shared between the users' computers and the servers. JavaScript is the standard language for user-side processing. Languages like C# and Java are used for server-side code. The databases in browser-based Internet applications are nearly always shared among many users.

The users' browsers connect over the Internet to a Web server computer, which in turn connects to a database server computer.

112) The specific purposes of the four elements of a database application are as follows: Forms—View data; insert new, update existing, and delete existing data Reports—Structured presentation of data using sorting, grouping, filtering, and other operations Queries—Search based upon data values provided by the user Application programs—Provide security, data consistency, and special purpose processing, e.g., handle out-of-stock situations.

113) Because of metadata, no one needs to guess, remember, or even record what is in the database. To find out what a database contains, we just look at the metadata inside the database.

17

Exam Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Which of the following is the most common format for IP addresses?

A) IPF B) IPv4 C) TCP D) http

E) IPv6

1)

2) Vivian wants to book a suite at Baron & Olufsen, a luxury hotel chain in Europe, for her brief stay in Austria. When she visits the Web page, the address bar reads http://www.baron-olufsen.com/.

This information is the ________ of the Web page.

A) protocol B) email ID C) IP address D) MAC address E) URL

2)

3) A computer that supports 10/100/1000 Ethernet allows for 10, 100, or 1000 ________ per second.

A) megabytes B) zetabits C) megabits D) kilobits E) kilobytes

3)

4) The ________ protocol standard is also known as Ethernet.

A) IEEE 802.3 B) IEEE 802.11 C) Bluetooth D) X25 E) DSL

4)

5) In 2017, the FCC reversed the 2015 ruling on net neutrality classifying the Internet as ________.

A) old B) a luxury C) a utility D) a network E) an information service

5)

6) The ________ tier of the three-tier architecture consists of computers, phones, and other mobile devices that have browsers that request and process Web pages.

A) mainframe B) server C) user D) data link E) database

6)

1

7) Jerry wants to use ________ so that he can add his own application on top of the hosted platform.

A) Amazon S3 B) Skype C) Office 365 D) Apple iCloud E) Microsoft Azure

7)

8) In 2015, the Federal Communications Commission approved new net neutrality regulations, making the Internet more ________.

A) a network B) controlling C) safer D) expensive E) like a utility

8)

9) A computer ________ is a collection of computers that communicate with one another over transmission lines or wirelessly.

A) database B) application C) processor D) network E) server

9)

10) A(n) ________ is a number that identifies a particular device.

A) NIP B) WSDL C) IP address

10)

D) domain

E) hyperlink

11) Soon more companies may use ________ to help analyze the mountains of big data they're collecting.

A) IaaS B) EaaS C) PBaaS D) AaaS E) PaaS

11)

12) Which of the following statements is TRUE about a VPN? A) A VPN connection appears as a secure connection, though it is not.

B) A VPN network does not provide users with remote access.

C) A VPN connection utilizes private networks instead of the public network.

D) A VPN client software encrypts messages to ensure secure transmissions.

E) A VPN is only used between hosts on local networks.

12)

13) A(n) ________ is a cloud that is owned and operated by an organization for its own benefit.

A) service as a cloud B) IPX/SPX C) virtual private network D) wide area network E) private cloud

13)

14) Identify a characteristic that is a disadvantage of cloud-based hosting.

A) increased management requirements B) significant development effort C) loss of control over data location D) significant capital required E) ongoing support costs

14)

2

15) Layla runs a startup that makes custom engraved floor tiles. Her business is growing rapidly and she needs a cloud vendor to provide her with an operating system and a database management system. In this scenario, which of the following services will the vendor provide?

A) IaaS B) CDN C) PaaS D) VPN E) Web hosting

15)

16) The ________ is a core Internet protocol that guarantees the reliable delivery of packets.

A) FTP B) IP C) UDP D) TCP E) HTML

16)

17) Which of the following is a characteristic of cloud-based hosting?

A) no obsolescence B) static storage capacity C) in-depth visibility of security D) unknown cost structure E) full control of data location

17)

18) Which of the following protocols guarantees secure data transmission?

A) http B) https C) ftp D) smtp

E) IP

18)

19) Zapstreet is a stockbrokering firm. Its employees use a private network within the organization to communicate with each other regarding stock prices and trading accounts. Zapstreet's network is an example of a(n) ________.

A) Ethernet B) WLAN C) intranet D) cloud E) server

19)

20) Tristom Technologies, based in New York, opens branches in Chicago and Detroit. Which of the following networks will the company use to connect computers in the three offices?

A) XML B) LAN C) WAN D) HTML E) URL

20)

21) For communications equipment, M stands for ________.

A) 1,000 B) 15,000 C) 1,024

21)

D) 500

E) 1,000,000

22) Why was the client-server architecture more appealing to organizations than mainframes?

A) Companies were not using mainframes anymore.

B) The mainframes were getting older.

C) The client-server architecture was cheaper.

D) Mainframes cannot connect to the cloud.

E) It is easier to set up a client-server architecture than a mainframe.

22)

23) For communications equipment, K stands for ________.

A) 1,000 B) 10,000 C) 1,042

23)

D) 100

24) Which of the following refers to the three tiers in the three-tier architecture?

A) user, server, and database B) tunnel, switch, and access point C) IP, IPv4, and IPv6 D) HTML, XML, and JSON E) TCP, IP, and http

3

E) 1,024

24)

25) Which of the following is a function of an Internet service provider?

A) It connects computers within a LAN. B) It transmits data over short distances, replacing cables.

C) It serves as a user's gateway to the Internet.

D) It converts analog signals to binary signals.

E) It describes how messages must be processed for wired transmission.

25)

26) Which of the following is a benefit of in-house hosting?

A) fewer training requirements B) lower capital requirements C) in-depth visibility of security and disaster preparedness D) no obsolescence E) superior flexibility and adaptability to growing or fluctuating demand

26)

27) Which of the following features distinguishes a LAN from a WAN? A) A WAN has low bandwidth.

B) A WAN has a limit on the number of users.

C) A LAN connects computers in a single location.

D) A LAN has stringent hardware requirements.

E) A LAN is bigger than a WAN.

27)

28) Derek, a Web designer, works for a pharmaceutical company. He uploads information about the company's products on to its official Web site. Which of the following will Derek use to transmit data from the company's server to its Web site?

A) XML B) JSON C) RTP D) WSDL E) SOAP

28)

29) The connection between a VPN client and a VPN server is called a(n) ________.

A) access point B) bridge C) data highway D) hyperlink E) tunnel

29)

30) ________ is the principle that all data is treated equally.

A) Equal access B) ISP C) IP D) Fair play E) Net neutrality

30)

31) In cloud computing, resources are said to be "pooled" because organizations ________.

A) share the same physical address range B) share the same physical hardware through virtualization C) use the public Internet to create the appearance of a private connection D) use open source standards that enable users to modify a program's source code E) offer their services to each other free of charge, in a give-and-take arrangement

31)

4

32) All of the following are negatives of cloud computing except ________.

A) no control over prices B) having a disaster recovery plan C) dependency on a vendor D) the company has to rely on vender management E) loss of control

32)

33) The term ________ means that the computing resources leased can be increased or decreased dynamically in a short span of time and that organizations pay for just the resources that they use.

A) incremental B) elastic C) pooled D) portable E) programmatic

33)

34) Which of the following is an example of PaaS, a category of cloud hosting?

A) Microsoft Azure B) iCloud C) Skype D) Amazon S3 E) Microsoft Office 365

34)

35) Which of the following statements is TRUE about cable lines?

A) They provide faster download speeds than OC128 lines.

B) They offer consistent performance irrespective of the number of users sending and receiving data.

C) They provide high-speed data transmission using telephone cables.

D) They rely on high-capacity optical fiber cables and use their own protocols for data transmission.

E) They provide faster download speeds than DSL modems.

35)

36) Which of the following characteristics is a disadvantage of cloud-based hosting?

A) It involves high annual maintenance costs.

B) It involves significant requirement of capital.

C) It involves high ongoing support costs.

D) It involves high dependency on vendor.

E) It involves high cost uncertainties.

36)

37) Which of the following statements is TRUE of digital subscriber line signals?

A) Digital subscriber line signals replace phone signals and are sent to the ISP. B) Digital subscriber line signal data transmission and telephone conversations cannot occur simultaneously.

C) Digital subscriber line signals do not interfere with telephone signals.

D) Digital subscriber line signals use the same protocols as cable modems for data transmission.

E) Digital subscriber lines use single-mode optical fiber only.

37)

38) A ________ is a formatted message that passes through networks.

A) packet B) codec C) SLACC D) protocol

38)

5

E) package

39) Where does the cloud reside?

A) at the local TELCO B) in the Internet C) underground D) inside the browser E) on a PC

39)

40) Carol uses a high-speed internet connection at home. Her connection is supported by the television line, but it does not interfere with the television signal. Carol uses a(n) ________ connection.

A) DSL B) cable C) satellite D) dial-up E) ADSL

40)

41) Cloud resources are ________ because many different organizations use the same physical hardware.

A) elastic B) pooled C) portable D) shared E) programmatic

41)

42) All of the following are benefits of content delivery networks except ________.

A) increased reliability B) protection from DoS attacks C) pay-as-you-go D) increased loadtime E) reduced delivery costs for mobile users

42)

43) ________ are large-scale high-speed centralized computers, used for internal corporate data processing needs.

A) Thin clients B) Hosts C) NAS D) Clients E) Mainframes

43)

44) ________ are programs that run on a server-tier computer and manage traffic by sending and receiving Web pages to and from clients.

A) Server farms B) Web servers C) Web browsers D) VPNs E) Server racks

44)

45) A ________ is a worldwide-unique term that is affiliated with a public IP address.

A) packet B) DNF C) URL D) domain name E) hyperlink

45)

46) All of the following applications create the contents of a packet except ________.

A) Skype B) Filezilla C) Word D) Firefox 6

E) Safari

46)

47) Which of the following is defined as the elastic leasing of pooled computer resources over the Internet?

A) Bluetooth B) wiki C) SSD D) broadband E) the cloud

47)

48) A ________ is a set of rules and data structures for organizing communication.

A) protocol B) packet C) cloud D) codec

48)

E) syntax

49) ________ is a wireless protocol designed for transmitting data over short distances, replacing cables.

A) IPv4 B) PaaS C) Bluetooth D) 802.5 E) IPv6

49)

50) Large carriers like Sprint, AT&T, and XO Communications exchange Internet traffic freely at physical locations called ________.

A) Internet cross points B) Internet hubs C) Internet processing points D) Internet way points E) Internet exchange points

50)

51) ________ is information systems that provide computer-based activity or action at a distance.

A) Remote action systems B) Office 365 C) Hudl D) Google's Project Loon E) Google Fiber

51)

52) ________ is a category of cloud hosting where vendors provide hosted computers with an operating system, runtime environment, and middleware like a Web server or a DBMS. A) SaaS B) PaaS C) IaaS D) BaaS E) TaaS

52)

53) The protocols used on the Internet are arranged according to a structure known as the ________ protocol architecture.

A) smtp B) http C) ftp D) telnet E) TCP/IP

53)

54) ________ is a category of cloud hosting where vendors provide not only hardware infrastructure and an operating system but application programs and databases as well.

A) SaaS B) PaaS C) IaaS D) BaaS E) TaaS

54)

55) A ________ is an application program that runs on a server-tier computer and manages processes such as items in a shopping cart.

A) commerce server B) database C) web server D) database tier

55)

56) Which of the following TCP/IP application-layer protocols is used to move files over the Internet and maintain Web sites?

A) ftp B) smtp C) http D) rdp E) https

56)

7

57) ________ contains much metadata that can be used to validate the format and completeness of the document, but includes considerable overhead.

A) RTP B) XML C) SOAP D) WSDL E) JSON

57)

58) Which of the following is an example of SaaS? A) Oracle On Demand B) Amazon S3 C) Microsoft Azure D) iCloud E) Google App Engine

58)

59) Which of the following statements is TRUE about IEEE 802.3?

A) It is the protocol for optical fiber rings.

B) It is the universal standard protocol for all WAN connections.

C) It is the protocol for wired LAN connections.

D) It is the protocol for wireless LAN connections.

E) It is the protocol for Bluetooth.

59)

60) To enable a seamless flow of data across the networks that comprise an internet, an elaborate scheme called a ________ is used.

A) remote access system B) three-tier system C) layered protocol D) virtual LAN E) virtual private network

60)

61) ________ is a standard for describing the services, inputs and outputs, and other data supported by a Web service.

A) JSON B) RTP C) XML D) WSDL E) SOAP

61)

62) Compared to in-house hosting, cloud-based hosting ________.

A) requires significant development effort B) provides greater control over the location of data C) requires a significant amount of capital D) provides better visibility of security and disaster preparedness capabilities E) minimizes the risk of investing in technology that will soon become obsolete

62)

63) Which of the following TCP/IP application-layer protocols is used for email transmissions?

A) https B) UDP C) IP D) ftp E) smtp

63)

64) Which of the following is the most basic cloud offering?

A) SAS B) CDN C) SaaS

64)

D) IaaS

E) VPN

65) ABC, Inc wants to securely share electronic documents internally with the employees. The best way to implement this strategy is to ________.

A) create a private cloud B) create a bridge C) use Google docs D) send documents via interoffice mail E) use an access point

8

65)

66) A(n) ________ uses the Internet to create the appearance of private, secure connections.

A) URL B) ISP C) DSL D) VPN E) ASP

66)

67) Which of the following is an example of IaaS? A) Office 365 B) Salesforce.com C) Microsoft Azure D) Amazon S3 E) Apple iCloud

67)

68) Most PAN devices connect wirelessly to other devices located within ________.

A) 100 meters B) 300 meters C) 30 meters D) 3 meters E) 10 meters

68)

69) The organization responsible for assigning public IP addresses is called ________.

A) ISO B) ICANN C) USIPA D) IEEE

E) CERN

69)

70) Amazon S3 is an example of ________.

A) VPN B) IaaS

E) SaaS

C) PaaS

D) CDN

70)

71) Maxwell Insurance recently got its communication network updated to the IEEE 802.11ac protocol.

Which of the following is TRUE of this protocol?

A) It allows speeds of up to 1.3 Gbps.

B) It is also known as Ethernet.

C) It cannot be processed by access points.

D) It defines high-speed infrared connections.

E) It is used for wired LAN connections.

71)

72) ________ is a category of cloud hosting where vendors provide a bare server computer, data storage, network, and virtualization.

A) SaaS B) PaaS C) IaaS D) BaaS E) TaaS

72)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

73) As a business professional, you will need to know the advantages and disadvantages of on-premises hosting.

73)

74) Https is the secure version of http.

74)

75) An Internet is a network of networks that connects LANs, WANs, and other internets.

75)

76) An organization that provides software as a service provides not only hardware infrastructure and an operating system but application programs and databases as well.

76)

77) Ftp is the protocol used mainly for email transmissions.

77)

9

78) Cloud-based hosting is the ideal choice for organizations that are required by law to have physical control over their data.

78)

79) With a WAN, an organization is allowed to place communications lines wherever it wants because all lines reside on its premises.

79)

80) A URL consists of a protocol followed by a domain name or public IP address.

80)

81) TCP/IP protocol architecture is a scheme of protocol types arranged in four layers.

81)

82) The owner of a domain name can change the affiliated IP addresses at its discretion.

82)

83) The committee that addresses LAN standards is called IEEE 802 Committee.

83)

84) In order to get on the Internet, every device must have access to a public IP address.

84)

85) When a person connects to the Internet, he or she is actually connecting to an Internet service provider.

85)

86) Web servers are programs that run on a server-tier computer and manage traffic by sending and receiving Web pages to and from clients.

86)

87) The World Wide Web sponsors committees that create and publish protocol and other standards.

87)

88) Small companies usually lack the technical expertise and management to load operating systems onto servers acquired via the cloud.

88)

89) Wired LAN connections use a protocol standard called Ethernet to communicate.

89)

90) An intranet is a private internet that is used exclusively within an organization.

90)

91) Bluetooth is a common wireless protocol used to make PAN connections.

91)

92) A computer network is a collection of computers that communicate with one another over transmission lines or wirelessly.

92)

93) Unlike ftp, http does not have a secure version.

93)

94) Wireless internet standards do not change.

94)

95) To ensure security, the VPN client software decrypts the original message so that its contents are protected from snooping.

95)

96) The cloud is defined as the elastic leasing of pooled computer resources over the Internet.

96)

97) SOAP is a protocol for requesting Web services and for sending responses to Web service requests.

97)

98) Assignment of both public and private IP addresses is controlled by ICANN.

98)

10

99) Because DSL signals interfere with telephone signals, DSL data transmission and telephone conversations cannot occur simultaneously.

99)

100) The most basic cloud offering is infrastructure as a service (IaaS) that is the cloud hosting of a bare server computer or data storage.

100)

101) Every organization uses the cloud well.

101)

102) With the 2017 FCC ruling ISPs could manage the flow of network traffic over their networks.

102)

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

103) Discuss wireless LAN and PAN connections.

104) Define SaaS, PaaS, and IaaS. Provide an example of each.

105) What is a computer network? What are the various types of networks?

106) What is a private cloud? Describe how a private cloud is created and the security it provides?

107) What is an IP address? Describe the advantages of private and public IP addresses.

108) Explain the relevance of cloud-based hosting today.

109) What are remote action systems? Explain with the help of examples.

110) List the functions of an Internet service provider (ISP).

111) Define the cloud and discuss its attributes.

112) What are content delivery networks? Discuss some of its uses.

113) Compare the movement of packages in the U.S. postal system to the movement of packets through the Internet.

114) What is a digital subscriber line (DSL)?

115) When does it not make sense to use cloud-based hosting infrastructure?

116) Describe the three-tier architecture for Web applications such as e-commerce.

117) Discuss TCP/IP Protocol Architecture and define Internet protocols.

11

Answer Key Testname: C6

1) B 2) E 3) C 4) A 5) E 6) C 7) E 8) E 9) D 10) C 11) D 12) D 13) E 14) C 15) C 16) D 17) A 18) B 19) C 20) C 21) E 22) C 23) A 24) A 25) C 26) C 27) C 28) B 29) E 30) E 31) B 32) B 33) B 34) A 35) D 36) D 37) C 38) A 39) B 40) B 41) B 42) D 43) E 44) B 45) D 46) C 47) E 48) A 49) C 50) E 12

Answer Key Testname: C6

51) A 52) B 53) E 54) A 55) A 56) A 57) B 58) D 59) C 60) C 61) D 62) E 63) E 64) D 65) A 66) D 67) D 68) E 69) B 70) B 71) A 72) C 73) TRUE 74) TRUE 75) TRUE 76) TRUE 77) FALSE 78) FALSE 79) FALSE 80) TRUE 81) FALSE 82) TRUE 83) TRUE 84) TRUE 85) TRUE 86) TRUE 87) FALSE 88) TRUE 89) TRUE 90) TRUE 91) TRUE 92) TRUE 93) FALSE 94) FALSE 95) FALSE 96) TRUE 97) TRUE 98) FALSE 99) FALSE 100) TRUE 13

Answer Key Testname: C6

101) FALSE 102) TRUE 103) Wireless LAN connections use the IEEE 802.11 protocol. Several versions of 802.11 exist, and as of 2016, the most current one is IEEE 802.11ac. The current standard, 802.11ac, allows speeds of up to 1.3 Gbps, though few users have an Internet connection fast enough to take full advantage of that speed. Bluetooth is another common wireless protocol used to make PAN connections. It is designed for transmitting data over short distances, replacing cables. Devices, such as wireless mice, keyboards, printers, and headphones, use Bluetooth to connect to desktop computers.

104) An organization that provides software as a service (SaaS) provides not only hardware infrastructure, but also an operating system and application programs as well. For example, Salesforce.com provides programs for customer and sales tracking as a service. The second category of cloud hosting is platform as a service (PaaS), whereby vendors provide hosted computers, an operating system, and possibly a DBMS. Microsoft Windows Azure, for example, provides servers installed with Windows Server. Customers of Windows Azure then add their own applications on top of the hosted platform. The third category of cloud hosting is infrastructure as a service (IaaS) that is the cloud hosting of a bare server computer or disk drive. Amazon EC2 provides bare servers, and its Simple Storage Server provides, in essence, an unlimited, reliable disk drive in the cloud.

105) A computer network is a collection of computers that communicate with one another over transmission lines or wirelessly. A local area network (LAN) connects computers that reside in a single geographic location on the premises of the company that operates the LAN. The number of connected computers can range from two to several hundred.

The distinguishing characteristic of a LAN is a single location. A wide area network (WAN) connects computers at different geographic locations. The computers in two separated company sites must be connected using a WAN. An internet is a network of networks. Internets connect LANs, WANs, and other internets. The most famous internet is "the Internet." In addition to the Internet, private networks of networks, called internets, also exist. A private internet that is used exclusively within an organization is sometimes called an intranet.

106) A private cloud is a cloud owned and operated by an organization for its own benefit. To create a private cloud, the organization creates a private internet and designs applications using accepted Web services standards. A private cloud consists of a farm of servers and manages those servers with elastic load balancing just as the cloud service vendors do. Private clouds provide security within the organizational infrastructure but do not provide secure access from outside that infrastructure.

107) An IP address is a number that identifies a particular device. Public IP addresses identify a particular device on the public Internet. Because public IP addresses must be unique, worldwide, their assignment is controlled by a public agency known as ICANN (Internet Corporation for Assigned Names and Numbers). Private IP addresses identify a particular device on a private network, usually on a LAN. Their assignment is controlled within the LAN. The private/public IP address scheme has two major benefits. First, public IP addresses are conserved. All of the computers on the LAN use only one public IP address. Second, by using private IP addresses, one is protected from attackers directly attacking him or her because attackers cannot send attack packs to private IP addresses. They can only send attacks to devices with public IP addresses.

108) Three factors have made cloud-based hosting advantageous today. First, processors, data communication, and data storage are so cheap that they are nearly free. Because data communication is so cheap, getting the data to and from that processor is also nearly free.

Second, virtualization technology enables the near instantaneous creation of a new virtual machine. The customer provides (or creates in the cloud) a disk image of the data and programs of the machine it wants to provision.

Virtualization software takes it from there. Finally, as stated, Internet-based standards enable cloud-hosting vendors to provide processing capabilities in flexible yet standardized ways.

109) Remote action systems provide computer-based activity or action at a distance. By enabling action at a distance, remote action systems save time and travel expense and make the skills and abilities of an expert available in places where he or she is not physically located. They also enable experts to scale their expertise.

Remote action systems include telediagnosis, telesurgery, and telelaw enforcement. Telediagnosis is a remote action system that health care professionals use to diagnose illness for rural or remote areas. Telesurgery uses telecommunications to link surgeons to robotic equipment at distant locations. Telelaw enforcement, such as the RedFlex system, uses cameras and motion-sensing equipment to issue tickets for red-light and speeding violations.

14

Answer Key Testname: C6

110) An ISP has three important functions. First, it provides the user with a legitimate Internet address. Second, it serves as the user's gateway to the Internet. The ISP receives the communications from the user's computer and passes them on to the Internet, and it receives communications from the Internet and passes them on to the user. Finally, ISPs pay for the Internet. They collect money from their customers and pay access fees and other charges on the user's behalf.

111) The cloud is defined as the elastic leasing of pooled computer resources over the Internet. The term cloud is used because most early diagrams of three-tier and other Internet-based systems used a cloud symbol to represent the Internet, and organizations came to view their infrastructure as being "somewhere in the cloud."

The term elastic means that the computing resources leased can be increased or decreased dynamically, programmatically, in a short span of time and that organizations pay for just the resources that they use.

Cloud resources are pooled because many different organizations use the same physical hardware; they share that hardware through virtualization.

The cloud resources are accessed over the Internet, which refers to a set of standard ways of requesting and receiving services over the Internet.

112) A content delivery network (CDN) is a system of hardware and software that stores user data in many different geographical locations and makes those data available on demand.

A CDN provides a specialized type of PaaS but is usually considered in its own category.

A news organization could use a CDN to store copies of its news articles. The CDN vendor replicates articles on servers, possibly worldwide, so as to speed response time. In addition to news articles, CDNs are often used to store and deliver content that seldom changes. For example, the company banner on an organization's Web page might be stored on many CDN servers. Various pieces of the Web page could be obtained from different servers on the CDN. 113) The Internet works much like the U.S. postal system in that both systems transport things from one location to another.

The Internet transports email, while the U.S. postal system sends paper mail. Packets wind their way through the Internet much the same way packages wind their way through the U.S. postal system. Names are like domain names; a phone book is like DNS; mailing addresses are like IP addresses; registered mail is like TCP; airlines are like carriers; and airports are like routers.

114) Digital subscriber lines (DSLs) operate on the same lines as voice telephones, but they operate so that their signals do not interfere with voice telephone service. Because DSL signals do not interfere with telephone signals, DSL data transmission and telephone conversations can occur simultaneously. A device at the telephone company separates the phone signals from the computer signals and sends the latter signal to the ISP. Digital subscriber lines use their own protocols for data transmission.

115) Cloud-based hosting makes sense for most organizations. The only organizations for which it may not make sense are those that are required by law or by industry standard practice to have physical control over their data. Such organizations might be forced to create and maintain their own hosting infrastructure. A financial institution, for example, might be legally required to maintain physical control over its data.

116) The three-tier architecture is an arrangement of user computers and servers into three categories, or tiers. The user tier consists of computers, phones, and other mobile devices that have browsers that request and process Web pages. The server tier consists of computers that run Web servers and process application programs. The database tier consists of computers that run a DBMS that processes requests to retrieve and store data. Web servers are programs that run on a server-tier computer and manage traffic by sending and receiving Web pages to and from clients. A commerce server is an application program that runs on a server-tier computer. Typical commerce server functions are to obtain product data from a database, manage the items in a shopping cart, and coordinate the checkout process.

117) The basic plumbing of the Internet is governed by protocols that are defined according to an arrangement called the TCP/IP protocol architecture. This architecture has five layers; one or more protocols are defined at each layer. Data communications and software vendors write computer programs that implement the rules of a particular protocol.

The Internet protocols that a business professional is likely to encounter are as follows: Hypertext Transfer Protocol (http) is the protocol used between browsers and Web servers. Whenever a browser such as Microsoft Edge, Safari, or Chrome is used, a program that implements the http protocol is being used. A secure version of http is called https.

Simple Mail Transfer Protocol, or smtp, is used for email transmissions (along with other protocols). File Transfer Protocol, or ftp, is used to move files over the Internet.

15

Exam Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) ________ is a necessary task in keeping the team informed because team membership can change.

A) Goal setting B) Micromanagement C) A daily newsletter D) Frequent team members E) Keeping documentation

1)

2) Which of the following happens during the doing phase of project management?

A) Plan the budget.

B) Determine completion.

C) Determine dependencies.

D) Reschedule tasks as necessary.

E) Set team authority.

2)

3) Which application would one use to process photos?

A) Microsoft Word B) Microsoft SharePoint C) Dropbox D) Google Picasa E) Google Drive

3)

4) A ________ is where businesses hire many people as independent contractors for a short period of time.

A) sharing economy B) gig economy C) freedom economy D) relaxed economy E) new economy

4)

5) All of the following are criterion for team success when using a collaboration IS except ________.

A) completing the work within budget B) satisfying experience C) non-meaningful experience D) growth in team capability E) completing the work on time

5)

6) All of the following are considered collaboration programs except ________.

A) OneDrive B) Google Docs C) text messaging D) email E) Microsoft Word

6)

1

7) Microsoft Skype for Business is part of the ________ tool set.

A) minimal B) SharePoint C) wikis D) good E) comprehensive

7)

8) Which of the following happens during the starting phase of project management?

A) Assign tasks.

B) Solve problems.

C) Revise budget D) Establish team rules.

E) Determine completion

8)

9) If a document is stored on a file server but team members can edit the document anonymously, the content on the file server is ________.

A) shared with the public B) shared content with version control C) shared on Google drive D) shared content with version management E) shared content with no control

9)

10) Using emails to communicate asynchronously is not a good idea for all of the reasons below except ________.

A) too much freedom B) difficulty in finding attachments C) difficult to find particular emails D) it is easy to hide from email E) email threads are organized

10)

11) Jerry is in a group that only provides positive feedback because of group cohesion. Jerry is concerned the group is participating in ________.

A) criticism B) collaboration C) cooperation D) groupthink E) a feedback loop

11)

12) As a student you would most likely use the ________ collaboration tool set because it is free and takes not time to learn.

A) minimal B) wikis C) maximum D) comprehensive E) good

12)

2

13) What happens when a user checks out a document in a version control application?

A) The document can be checked in by a different user so it can be edited.

B) The system will notify via email about the unavailable document.

C) Users are permitted to edit the document while it is checked out to another user.

D) No other user is allowed to modify the document.

E) An Acrobat PDF document is created for each checked out document.

13)

14) ________ occurs when all team members meet at the same time.

A) Manage projects efficiently B) Team communication C) Synchronous communication D) History E) Asynchronous communication

14)

15) All of the following are examples of project metadata except ________.

A) tasks B) hardware serial numbers C) budgets D) schedules E) managerial data

15)

16) The manager of ABC, Inc decides to order the same number of widgets this year as last year. The manager has made a(n) ________ decision.

A) informed B) gut C) structured D) regular E) centralized

16)

17) Because of growth in team capability, over time the team becomes more ________ and over time can perform the same service for less cost.

A) loyal to the organization B) able to report tasks C) efficient D) cohesive E) stable

17)

18) What is the most important task for a problem-solving collaborative group?

A) Defining the problem B) Breaking the problem down into pieces C) Making decisions D) Solving the problem E) Deciding if the problem is structured or unstructured

18)

19) Stan uses a ________ because wants to gather the team's opinion on where the next milestone meeting should be located.

A) WebEx B) videoconference C) discussion forum D) Skype call E) team survey

19)

3

20) Which of the following is vitally important to a meaningful work experience?

A) Shortening the learning curve for new activities.

B) Recognizing individuals for their contribution to the team.

C) Having a successful outcome D) Teaching other team members tasks.

E) Promotion opportunities.

20)

21) What is one way to share a task list effectively?

A) Keep it on the bulletin board.

B) Handwrite the list and pass it around during the meeting.

C) Use Microsoft SharePoint.

D) Send an email with the task list.

E) Keep an excel spreadsheet on your personal hard drive.

21)

22) All of the following are part of problem-solving tasks except ________.

A) increase revenues B) specify evaluation criteria C) implement solutions D) define the problem E) evaluate alternatives

22)

23) Jack is frustrating his team because the feedback he provided for the last set of project documents was "this document is a mess". Jack's feedback was ________.

A) goal oriented B) much needed C) specific D) unconstructive E) timely

23)

24) Which of the following happens during the planning phase of project management?

A) Perform project tasks.

B) Document and report progress.

C) Revise budget.

D) Form the team.

E) Disband team.

24)

25) ________ occurs when the collaboration tool limits and sometimes even directs user activity.

A) Using a file server B) Version management C) Version control D) Sharing content E) Microsoft Word

25)

26) If one group member posts an entry and the other group members respond to that post the group is most likely participating in ________.

A) a discussion forum B) a webinar C) Google Hangout D) a videoconference E) an email thread

26)

4

27) Which of the following applications will allow a user to practice shared content with version control?

A) Dropbox B) Microsoft Word C) Apple's iCloud D) Google Docs E) Microsoft SharePoint

27)

28) Which application below is an open-source, license free product?

A) Word B) Camtasia C) Microsoft Office D) OpenOffice E) Adobe Photoshop

28)

29) Which desktop application would be best suited for photos?

A) Adobe Photoshop B) Microsoft Office C) Excel D) Google SketchUp E) Sharepoint

29)

30) Most student teams are concerned with ________, the first criterion for a successful team.

A) growth in team capability B) meaningful and satisfying experience C) being on time D) getting better E) successful outcomes

30)

31) Pam purchased video cameras for all of her employees so they can participate in ________.

A) a webinar B) the same computer C) videoconferencing D) a screen-sharing application E) discussion forum

31)

32) Because of the need to provide feedback, ________ is/are essential to every collaborative project.

A) meetings B) team communication C) tasks D) good management skills E) metadata

32)

33) One aspect of team satisfaction is ________.

A) camaraderie B) loyalty to the team manager C) a high salary D) efficiency E) team growth

33)

5

34) Mary's team is located in different countries. Because of the time zone differences, it is difficult for the team to meet all together, so their meetings are conducted ________.

A) when Mary can meet because she is the leader B) synchronously C) asynchronously D) the end of the project is reached E) at the same time

34)

35) Jason wanted to have a virtual meeting where all participants could participate simultaneously so he opted to use ________.

A) discussion forum B) videoconferencing C) a webinar D) the same computer E) a screen-sharing application

35)

36) What types of decisions concern the allocation and utilization of resources?

A) unstructured decisions B) structured decisions C) strategic decisions D) managerial decisions E) operational decisions

36)

37) Even if your team could afford the comprehensive tool set why might you decide not to use it?

A) Management may not want to train the team.

B) You want to reallocate the budget to a different task.

C) The team voted on using email.

D) The team is more comfortable with texting.

E) The power curve is too high.

37)

38) ________ occur when participants do not meet in the same place and possibly not at the same time.

A) Workspaces B) Networking C) Meetings D) Shared spaces E) Virtual meetings

38)

39) All of the following are characteristics of an effective collaborator except ________.

A) is open-minded B) is willing to enter difficult conversations C) is known for following through on commitments D) is curious E) is a popular leader

39)

40) All of the following are four primary purposes of collaboration except ________.

A) camaraderie B) manage projects C) solve problems D) make decisions E) become informed

40)

6

41) What is a key to making team progress?

A) Workflow control.

B) Using test plans.

C) Team comradery.

D) Using version management software.

E) Keeping a current task list.

41)

42) Which of the following happens during the finalizing phase of project management?

A) Determine schedule.

B) Establish team roles.

C) Update project budget.

D) Solve problems.

E) Prepare archival documents.

42)

43) A ________ is a virtual meeting in which attendees view one of the attendees' computer screens for a more formal and organized presentation.

A) videoconferencing B) a webinar C) discussion forum D) a screen-sharing application E) the same computer

43)

44) ________ are those that support broad-scope, organizational issues.

A) Allocation resources B) Strategic decisions C) Operational decisions D) Snap decisions E) Managerial decisions

44)

45) If there is not an agreed-on-decision-making method, a person is dealing with ________.

A) unstructured decision B) operational decisions C) strategic decisions D) structured decision E) managerial decisions

45)

46) What is the fundamental purpose of the starting phase?

A) To prepare documents.

B) To create alternative tasks.

C) To identify who does what.

D) To let everyone know the project is beginning.

E) To set the ground rules for the project.

46)

47) ________ are those that support operational day-to-day activities.

A) Snap decisions B) Managerial decisions C) Operational decisions D) Strategic decisions E) Allocation resources

47)

7

48) ________ is a group of people working together, all doing essentially the same work to accomplish a job.

A) Team work B) Cooperation C) Working together D) Strategists E) Collaboration

48)

49) Which application processes PDF files?

A) Camtasia B) Word C) Adobe Acrobat D) Adobe Photoshop E) Microsoft Office

49)

50) Version control involves all of the following capabilities except ________.

A) version histories B) document checkout C) user activity limited by permissions D) access to the documents on your personal hard drive E) workflow control

50)

51) ________ track(s) changes to documents and provide features and functions to accommodate concurrent work.

A) Microsoft Word B) Using a file server will C) Sharing content D) Version control E) Version management

51)

52) ________ is used to manage the product.

A) Tasks data B) Big data C) Project Metadata D) New data E) Project data

52)

53) Sally saves her files using OpenOffice. What is the name of her file?

A) TeamDoc.drp B) TeamDoc.zip C) TeamDoc.odt D) TeamDoc.xls E) TeamDoc.docx

53)

54) Which of the following is true of a sharing economy?

A) Consumers share their assets by leaving them at a business location.

B) Consumers temporarily share their assets with other consumers via lending.

C) Businesses and consumers share the costs of an asset.

D) Consumers participate in boarding asset.

E) Businesses lend their assets to facilitate a gig economy.

54)

8

55) ________ occurs when all team members do not meet at the same time.

A) Asynchronous communication B) History C) Synchronous communication D) Manage projects efficiently E) Team communication 56) ________ data is part of the collaboration's work product.

A) Project B) Big C) Metadata

D) New

55)

E) Tasks

56)

57) A computer that stores shared files is called a ________.

A) desktop PC B) hard drive C) USB drive D) group drive E) file server

57)

58) If a collaboration tool provides ________ it manages activities in a predefined process.

A) a file server B) version management C) history D) workflow control E) shared content

58)

59) Which of the following is not true when using a task list?

A) Create a testable task description B) Specify which tasks need to be finished before another task begins.

C) A due date is provided for each task.

D) Task descriptions should be specific.

E) The person assigned the task is also responsible for completing the tasks.

59)

60) ________ is a group of people working together to achieve a common goals via a process of feedback and iteration.

A) Working together B) Collaboration C) Cooperation D) Strategists E) Team work

60)

61) What is one of the most useful features of Microsoft SharePoint when sharing a task list?

A) Integration into Google docs.

B) The ability to share tasks list.

C) The ability for team members to edit the task.

D) Alerts E) The different views in Microsoft SharePoint

61)

9

62) Constructive criticism is both ________ advice given to improve an outcome.

A) unconstructive and negative B) positive and negative C) effective and negative D) timely and favorable E) positive and collaborative

62)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

63) A problem is a perceived difference between what is and what ought to be.

63)

64) Airbnb is the largest owner of hotel properties.

64)

65) Communication is important to manage content, project tasks, and other requirements.

65)

66) Decisions are made at four levels.

66)

67) For most groups, success is achieved when group members are able to give both favorable and critical feedback.

67)

68) The two key characteristics of collaboration are iteration and feedback.

68)

69) With collaboration tools it is possible to view the history of a document using version control software.

69)

70) For doing work on time and on budget, teams need support from their collaboration system.

70)

71) A collaboration information system is an information system that supports collaboration.

71)

72) Creating a task list is tedious and difficult.

72)

73) Shared directories are sometimes called libraries.

73)

74) Virtual meetings area always asynchronous.

74)

75) Face-to-face meetings require a lot of applications to be successful.

75)

76) Collaboration information system do not specify standards, and techniques for conducting the team's work.

76)

77) When evaluating a set of tools, you do not need to be concerned with procedures.

77)

78) Google Drive is a simple way to share task lists.

78)

79) A cooperative group can accomplish a given task faster and at a higher quality than an individual.

79)

80) Because collaboration involves feedback and iteration, it is inevitable that dozens, or even hundreds, of documents will be created.

80)

10

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

81) List the four types of team purposes along with at least two requirements for each purpose.

82) List the three criteria for successful collaboration.

83) What is the difference between collaboration and cooperation?

84) List the problem-solving tasks when managing projects.

85) Briefly describe the three sets of collaboration tools.

86) What are the issues in sharing content via email attachments.

87) What are the guidelines for giving and receiving constructive criticism?

88) How do teams get better?

89) List at least four types of virtual meetings.

90) Provide a brief overview of the five components of an IS for collaboration system.

91) Describe how to manage a project with a task list.

92) List the four phases and the main purpose of each phase.

93) What are the issues with using emails for communication?

11

Answer Key Testname: C7

1) E 2) D 3) D 4) B 5) C 6) E 7) E 8) D 9) E 10) E 11) D 12) A 13) D 14) C 15) B 16) C 17) C 18) A 19) E 20) B 21) C 22) A 23) D 24) C 25) C 26) A 27) E 28) D 29) A 30) E 31) C 32) B 33) A 34) C 35) E 36) D 37) E 38) E 39) E 40) A 41) E 42) E 43) B 44) B 45) A 46) E 47) C 48) B 49) C 50) D 12

Answer Key Testname: C7

51) E 52) C 53) C 54) B 55) A 56) A 57) E 58) D 59) E 60) B 61) D 62) B 63) TRUE 64) FALSE 65) TRUE 66) FALSE 67) TRUE 68) TRUE 69) TRUE 70) TRUE 71) TRUE 72) FALSE 73) TRUE 74) FALSE 75) FALSE 76) FALSE 77) FALSE 78) TRUE 79) FALSE 80) TRUE 81) The four types of team purposes for collaboration are become informed, make decisions, solve problems, and manage projects. Requirements for each purpose include: 1) Become informed: share data, support group communication, manage project tasks, and store history. 2) Make decisions: share decision criteria, alternative descriptions, evaluation tools, evaluation results, and implementation plan; support group communication; manage project tasks; publish decisions, store analysis and results. 3) Solve problems: share problem definitions, solution alternatives, costs and benefits; alternative evaluations, and solution implementation plan; support group communication; manage project tasks; publish problem and solution; and store problem definition, alternatives, analysis, and plan. 4) Manage projects: support starting, planning, doing, and finalizing project phases; support group communication; and manage project tasks.

82) The three criteria for successful collaboration are successful outcome, growth in team capability, and meaningful and satisfying experience.

83) Cooperation is a group of people working together, all doing essentially the same type of work, to accomplish a job.

Collaboration as a group of people working together to achieve a common goal via a process of feedback and iteration.

84) 1) Define the problem. 2) Identify alternative solutions 3) Specify evaluation criteria 4) Evaluate alternatives 5) Select an alternative and 6) Implement solution

13

Answer Key Testname: C7

85) The first, the Minimal set, has the minimum possible set of tools. With this set, you should be able to collaborate with your team, though you will get little support from the software. The second set, the Good set is a more sophisticated set of collaboration tools. With it, you will have the ability to conduct multiparty audio and video virtual meetings, and you will also have support for concurrent access to document, spreadsheet, and presentation files The third set of collaboration tools, the Comprehensive set, is the best of these three because it includes content management and control, workflow control, and online meetings with sharing.

86) The most primitive way to share content is via email attachments. However, email attachments have numerous problems. For one, there is always the danger that someone does not receive an email, does not notice it in his or her inbox, or does not bother to save the attachments. Then, too, if three users obtain the same document as an email attachment, each changes it, and each sends back the changed document via email, three different, incompatible versions of that document will be floating around. So, although email is simple, easy, and readily available, it will not suffice for collaborations in which there are many document versions or for which there is a desire for content control.

87) The guidelines for giving constructive criticism are be specific, offer suggestions, avoid personal comments, and set positive goals. The guidelines for accepting constructive criticism is question your emotions, do not dominate, and demonstrate a commitment to the group.

88) How does a team get better? For one, it develops better work processes. Activities are combined or eliminated.

Linkages are established so that "the left hand knows what the right hand is doing" or needs or can provide. Teams also get better as individuals improve at their tasks. Part of that improvement is the learning curve; as someone does something over and over, he or she gets better at it. But team members also teach task skills and give knowledge to one another. Team members also provide perspectives that other team members need.

89) Four types of virtual meetings are 1) screen sharing applications 2) webinars 3) videoconferencing and 4) discussion forums 90) As information systems, collaboration systems have the five components of every information system: hardware, software, data, procedures, and people. Concerning hardware, every team member needs a device for participating in the group's work, either a personal computer or a mobile device like an iPad. conducting the team's work.

Collaboration programs are applications like email or text messaging, Google Docs, Microsoft Office Online, and other tools that support collaborative work In addition, because teams need to share data, most collaboration systems store documents and other files on a server like Google Drive or Microsoft. Regarding the data component, collaboration involves two types. Project data is data that is part of the collaboration's work product. Project metadata is data used to manage the project. Schedules, tasks, budgets, and other managerial data are examples of project metadata. Both types of data, by the way, are subject to iteration and feedback. Collaboration information systems procedures specify standards, policies, and techniques for. The final component of a collaboration system is, of course, people.

91) One of the keys for making team progress is keeping a current task list. Good project managers make sure that every team meeting ends with an updated list of tasks, including who is responsible for getting each task done and the date by which he or she will get it done. Managing with a task list is critical for making progress. Task descriptions need to be specific and worded so it is possible to decide whether the task was accomplished. Finally, no benefit will come from this list unless every task has a date by which it is to be completed. Team leaders need to follow up on tasks to ensure they are done by that date. Without accountability and follow-up, there is no task management. You might want to add critical resources that are required, and you might want to specify tasks that need to be finished before a given task can be started. For team members to utilize the task list effectively, they need to share it.

92) The fundamental purpose of the starting phase is to set the ground rules for the project and the team. The purpose of the planning phase is to determine "who will do what and by when." Work activities are defined, and resources such as personnel, budget, and equipment are assigned to them. Project tasks are accomplished during the doing phase. For the finalizing phase. Are we done? This question is an important and sometimes difficult one to answer. If work is not finished, the team needs to define more tasks and continue the doing phase. If the answer is yes, then the team needs to document its results, document information for future teams, close down the project, and disband the team.

93) The problem with email is that there is too much freedom. Not everyone will participate because it is easy to hide from email. Email threads become disorganized and disconnected. After the fact, it is difficult to find particular emails, comments, or attachments.

14

Exam Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) ________ is a suite of applications called modules, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform.

A) Centralized process planning B) Business process reengineering C) Enterprise resource planning D) Enterprise application integration E) Customer relationship management

1)

2) ________ processes span an organization and support activities in multiple departments.

A) Strategic B) Enterprise C) Clustered D) Inter-enterprise E) Reactive

2)

3) Carla, a budding restaurateur, meets a veteran chef and restaurateur, Giovanni. Carla wishes to analyze the purchasing pattern of her customer base. Which of the following is most likely to be a piece of sound advice that Giovanni would offer to Carla?

A) Carla should use her restaurant's distributed systems to know more about her customers' purchasing patterns.

B) Carla should delete any data over thirty days old to protect customer privacy.

C) Carla should support strategic and less structured managerial decisions to ensure that standardization occurs.

D) Carla should avoid using the restaurant's integrated system to analyze her customers' purchasing patterns.

E) Carla should support less specific and fluid managerial decisions to ensure that standardization occurs.

3)

4) Which of the following is a solution for problems arising from information silos?

A) departmentalization of an organization B) isolating functional applications C) integrating data into a single database D) limiting communication to top-level management E) implementation of a data concentration server

4)

5) Which of the following statements about enterprise information systems is TRUE? A) They do not require users to have any formal training.

B) The procedures are not formalized or documented.

C) They are very difficult to change.

D) They promote substantial workgroup data duplication.

E) They support 10 to 100 users.

5)

1

6) When implementing new enterprise systems, usually the only solution for resolving process issues and providing enterprise process management is to ________.

A) establish clear and absolute contractual guidelines B) communicate the need for change to the employees C) reinforce employees' sense of self-efficacy D) provide additional financial incentives E) develop committees and steering groups

6)

7) Which of the following is TRUE of implementing new enterprise systems?

A) It is simple and adaptable.

B) It can be done in a short period of time.

C) It poses no risks.

D) It is expensive and can be well over the budget.

E) It does not require updates.

7)

8) The ERP market is mature and facing stiff competition from ________.

A) Oracle B) PaaS C) SaaS D) new developers E) IaaS

8)

9) SmartToy Corporation's current market strategy is to gain a larger share of the high-end toy market by integrating IBM's AI, named Watson, into its teddy bears. The new line of AI enhanced teddy bears is a hit. SmartToy's market share increases fivefold. This is an example of the company's ________.

A) effectiveness B) efficiency C) competence D) conformity E) reliability

9)

10) Which phase of the customer life cycle focuses on increasing the value of existing customers by selling them more product?

A) relationship management B) customer endorsement C) customer acquisition D) marketing E) loss/churn

10)

11) Which of the following conditions exists when data are isolated in separated information systems?

A) information silo B) data segregation C) data branching D) encapsulation E) information overload

11)

2

12) A stored procedure is a ________.

A) program stored in a database that keeps the database consistent when certain conditions arise B) history of actions executed by a database management system C) data structure that improves the speed of data-retrieval operations in a database D) computer program stored in a database that is used to enforce business rules E) smaller code segment which is part of a larger data auditing application

12)

13) ________ are predesigned procedures for using software products.

A) Service descriptions B) Encapsulated processes C) Inherent processes D) Modules E) Triggers

13)

14) Which of the following is an effective and acceptable technique to overcome employee resistance while implementing new enterprise systems?

A) conducting contests with cash prizes among employees B) giving employees ultimatums and deadlines C) coercing employees to learn the new system D) tech shaming employees into accepting the system E) paying employees straight-out for transitioning to the new system

14)

15) Why would an organization want to move their enterprise system to the cloud?

A) Because they do not want to deal with data issues.

B) Organizations cannot move their enterprise system to the cloud.

C) Because the cloud is popular.

D) Because of a cost savings.

E) Because they want their data in another country.

15)

16) Supply chain management is an example of a(n) ________.

A) macro-enterprise information system B) inter-enterprise information system C) enterprise information system D) departmental information system E) personal information system

16)

17) A company uses their ________ to send coupons to your email for the things you buy at their store.

A) know how B) enterprise resource planning (ERP C) personnel D) modules E) customer relationship management (CRM) system

17)

18) Tony requests a credit approval of $25,000. Instead, he gets $15,000 approved as customer credit.

Which of the following problems caused by information silos is most likely the reason behind it?

A) data duplication B) disjointed processes C) isolated decisions D) improper data normalization E) limited information

18)

3

19) Which of the following statements is TRUE about workgroup information systems?

A) They are easy to change.

B) They can be operated without training.

C) They minimize data duplication among departments.

D) They support 10 to 100 users.

E) They support 1,000+ users.

19)

20) The primary purpose of an ERP system is ________.

A) customization B) customer acquisition C) integration D) duplication E) process exploitation

20)

21) To reduce the substantial work that needs to be done to customize an ERP application to a particular customer, ERP vendors provide ________.

A) process statistics B) inherent processes C) industry-specific solutions D) service descriptions E) DIY modules

21)

22) ERP vendors sometimes train an organization's employees, called Super Users, to become in-house ERP trainers in training sessions called ________.

A) sprints B) on-the-job training C) top-down training D) employ the employer E) train the trainer

22)

23) Process ________ is a measure of how well a process achieves organizational strategy.

A) reliability B) efficiency C) conformance D) adeptness E) effectiveness

23)

24) ________ are flexible, informal, and adaptive processes that normally involve strategic and less structured managerial decisions and activities.

A) Malleable processes B) Structured processes C) Dynamic processes D) Operational processes E) Inherent processes

24)

4

25) The inherent processes defined in an ERP solution are referred to by some ERP vendors as ________.

A) process blueprints B) process trees C) database transactions D) transaction logs E) stored procedures

25)

26) What is having a major impact on ERP vendors?

A) The cloud B) System analysts C) Market size D) Lazy users E) Epicor

26)

27) ERP customers will store most of their data on cloud servers managed by cloud vendors and store sensitive data on servers they manage themselves. This is known as the ________.

A) EAI model B) hybrid model C) mobility model D) compliance model E) information silo

27)

28) Which company is considered the gold standard as an ERP vendor?

A) Infor ERP B) SAP C) Microsoft D) Oracle

28)

E) Epicor

29) The two dimensions of process quality are ________.

A) conformance and durability B) performance and reliability C) ease of use and usability D) efficiency and effectiveness E) perception and serviceability

29)

30) ________ are formally defined, standardized processes that involve day-to-day operations.

A) Dynamic processes B) Kinetic processes C) Structured processes D) Unstructured processes E) Benchmarked processes

30)

31) Which phase of the customer life cycle categorizes customers according to value and attempt to win back high-value customers?

A) loss/churn B) marketing C) customer sponsorship D) customer acquisition E) relationship management

31)

5

32) Which of the following workgroup processes is related to manufacturing?

A) product and brand management B) finished goods inventory management C) order entry and tracking D) compensation E) capacity planning and scheduling

32)

33) Dollar Bill Supermarket is one of the best in the city. However, shoppers prefer other supermarkets to it as there is always a long queue at the billing counter. The outdated billing registers make the entire process inefficient. Which of the following steps should the supermarket management take to improve the billing process?

A) change process resources B) limit the number of customers in the supermarket C) limit the number of products customers can buy D) change the process structure E) change the process requirements

33)

34) Since the features and functions of complex products like CRM or ERP are not easy to identify, ________ is a major task when implementing enterprise systems.

A) gap identification B) data tunneling C) virtualization D) data duplication E) encapsulation

34)

35) ________ is the activity of altering existing and designing new business processes to take advantage of new information systems.

A) Business process outsourcing B) Process innovation planning C) Enterprise resource planning D) Business process modeling E) Business process reengineering

35)

36) A(n) ________ is a computer program stored within a database that runs to keep the database consistent when certain conditions arise.

A) stored procedure B) compressor C) trigger D) index E) transaction

36)

37) Enterprise application integration is a ________.

A) suite of software applications that consolidates existing systems by providing layers of software that connect applications together B) strategy that uses business process management to radically enhance data quality C) strategy that uses business process management to radically enhance customer service experience from any customer base D) suite of applications called modules, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform E) suite of applications, a database, and a set of inherent processes for managing all the interactions with the customer, from lead generation to customer service

37)

6

38) Systems where applications processing is distributed across multiple computing devices are known as ________.

A) telephony systems B) thick-client systems C) remote systems D) distributed systems E) Web systems

38)

39) ________ is a measure of the ratio of process outputs to inputs.

A) Process reliability B) Process efficiency C) Process effectiveness D) Process consistency E) Process conformance

39)

40) ERP training falls into two broad categories. One of the categories is training on how to use the ERP application software. What does the training include?

A) procedures to deal with employee resistance to the new system B) steps for obtaining top-level management support C) procedures to prepare for organizational changes while implementing ERP solutions D) steps for using the applications to accomplish the activities in various processes E) procedures for handling system error codes

40)

41) Which of the following is an example of a structured process?

A) collaboration B) new product offerings C) ill-defined situations D) social networking E) customer returns

41)

42) An Enterprise Resource Planning (ERP) solution does NOT include ________.

A) initial configuration data B) primary keys C) stored procedures D) a database design E) the company's operational data

42)

43) Jakub was recently hired as the tennis professional for a private country club. Jakub won national tennis titles in college and competed in a few professional matches. Jakub is confident he will do well in his new job. His confidence is a reflection of his ________.

A) self-elation B) self-appraisal C) self-actualization D) self-elevation E) self-efficacy

43)

7

44) The finance department of Global Couriers decides that half of the previous year's profits should be reinvested into the business. The marketing department, however, plans to extend the company's services to five more cities, which would require additional investment. The department heads hold a meeting at the end of the quarter to discuss the company's strategies; the meeting is, however, adjourned when they realize that their opinions clash. Information silo, in this case, has led to ________.

A) organizational inefficiency B) increased expense C) loss of business D) data duplication E) data paralysis

44)

45) The major benefit of enterprise application integration is that it ________.

A) decentralizes unnecessary information B) utilizes a centralized database C) acts as a cost-effective alternative to ERP, with greater capabilities D) minimizes the requirement for formalized procedures E) enables organizations to use existing applications

45)

46) All of the following are standards that enable programs to receive data from and display data to a variety of mobile and desktop devices except ________.

A) CSS 3 B) AOL C) javascript D) html5 E) SOA

46)

47) ________ is an example of an inter-enterprise information system.

A) CRM B) SMTP C) ARES D) EAI

47)

E) ERP

48) Which of the following is an example of a dynamic process?

A) Samsung accepts the return of a defective television from its dealer.

B) IBM orders more CPUs for a cluster.

C) Amazon.com hires customer service representatives to help customers with their online orders.

D) Nike uses Facebook and Twitter to generate buzz about its new line of running shoes.

E) Starbucks places an order for coffee beans from its local supplier.

48)

49) Arctic Gear LLC. recently adopted a new ERP system, but quickly found that it wasn't a perfect fit with their existing procedures. These differences between the organization's requirements and the application's capabilities are known as ________.

A) inability to adapt to new technology B) lack of collaborative management C) employee resistance D) requirements gaps E) transition problems

49)

8

50) Striking Apparels has launched its new stock of summer wear. It plans to target shoppers between the ages of twenty and thirty to sell its products. Daniel is responsible for sending out promotional emails and messages to these target customers. Daniel belongs to the ________ department of Striking Apparels.

A) relationship management B) loss/churn C) marketing D) engineering E) customer acquisition

50)

51) Which of the following is a characteristic of an inter-enterprise information system?

A) It is flexible and easily adaptable to organizational changes.

B) It increases data duplication among departments.

C) It does not require users to have any formal training.

D) It supports 10-100 users.

E) Its problem solutions affect multiple organizations.

51)

52) XYZ, inc has a new order entry system that uses the old databases. The shipping addresses are correct in one system, but the billing address is located in another system. The company is experiencing a(n) ________.

A) employee error situation B) data duplication problem C) disjointed process D) server problem E) data integrity problem

52)

53) Information systems improve process quality by ________.

A) duplicating data B) increasing purchasing power C) controlling process flow D) changing the work culture E) entirely replacing human activity

53)

54) All of the following are challenges of implementing and upgrading enterprise information systems except ________.

A) transitions problems B) collaborative management C) employee resistance D) requirements gaps E) old technology

54)

55) Which of the following workgroup processes is related to customer service?

A) account tracking B) sales forecasting C) assessment D) accounts payable E) lead generation

55)

9

56) Sina looks over annual performance evaluations for all employees in the sales department. Based on their performance, she determines who is eligible for merit-based salary increases. Sina belongs to the ________ workgroup.

A) marketing B) customer service C) operations D) sales E) human resources

56)

57) Matt works at a take-out restaurant. His job is to take orders over the phone and then pass it on to the kitchen staff. As a result of being short-staffed, the restaurant management decided to automate Matt's job and assign him kitchen duties instead. In this case, information systems are ________.

A) changing the process requirements B) augmenting a human performing an activity C) controlling data quality process flow D) cutting down expenses E) performing an activity

57)

58) Which of the following workgroup processes is related to operations?

A) account updating and tracking B) finished goods inventory management C) sales forecasting D) treasury and account management E) account tracking

58)

59) When an organization has inconsistent duplicated data, it is said to have a(n) ________.

A) data disunity problem B) error of omission C) data integrity problem D) information silo E) data segregation problem

59)

60) Identify the top two ERP vendors for the largest organizations.

A) SAP and Oracle B) Sage and Microsoft Dynamics C) Infor and SAP D) Microsoft Dynamics and SAP E) Microsoft Dynamics and Infor

60)

61) Which of the following information systems eliminates data duplication and carefully manages changes to duplicated data to maintain consistency?

A) virtual information systems B) departmental information systems C) enterprise information systems D) personal information systems E) workgroup information systems

61)

10

62) A toy manufacturing company installed a new enterprise system. The installation and adaptation gave rise to a number of issues among different departments. These issues complicated the process as the company had not appointed anyone to resolve them. This situation is an example of ________ while implementing enterprise information systems.

A) employee resistance B) transition problems C) a lack of collaborative management D) the occurrence of requirement gaps E) inability to adapt to new technology

62)

63) Which of the following is a characteristic of dynamic processes?

A) They are clearly expressed and articulated.

B) They support strategic and less structured managerial decisions.

C) They are usually formally defined and documented.

D) They support operational and managerial decisions and activities.

E) They are standardized processes.

63)

64) Accepting a return is what type of process?

A) Unstructured process B) Benchmarked process C) Structured process D) Dynamic process E) Kinetic process

64)

65) A(n)________ system is a suite of applications, a database, and a set of inherent processes for managing all the interactions with the customer, from lead generation to customer service.

A) customer relationship management B) business process reengineering C) customer lifecycle management D) customer pomological network E) enterprise resource planning

65)

66) Which of the following workgroup processes is related to sales and marketing?

A) lead tracking B) accounts receivable C) HR planning D) customer support E) order management

66)

67) Which of the following is performed by enterprise application integration?

A) It prevents data loss.

B) It prevents a gradual move to ERP. C) It prevents existing applications from communicating and sharing data.

D) It connects system "islands" via a new layer of software.

E) It duplicates the data because each application has its own database.

67)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

68) Process efficiency is a measure of the ratio of process outputs to inputs.

11

68)

69) The inherent processes that are defined in an ERP solution are referred to by some ERP vendors as process blueprints.

69)

70) Workgroups can develop information systems for their own needs, but, over time, this would result in information silos.

70)

71) Order tracking and account tracking are business processes concerning the operations department.

71)

72) If an organization cannot integrate the data into a single database, they can allow the information silo isolation, but manage it to avoid the problems.

72)

73) Business process reengineering is quick and easy.

73)

74) Dynamic processes are adaptive processes that change structure rapidly and readily.

74)

75) ERP vendors sometimes train an organization's employees to become in-house trainers in training sessions called train the trainer.

75)

76) CRM systems incorporate solicitation, sales, relationship management, and customer support applications.

76)

77) Product and brand management is a process concerning the sales and marketing department.

77)

78) A computer program stored within the database that runs to keep the database consistent when certain conditions arise is called a stored procedure.

78)

79) Inter-enterprise processes span an organization and support activities in multiple departments.

79)

80) Choosing an ERP solution that has applications that function close to the organization's requirements is critical to its successful implementation.

80)

81) Unless a structure change is only a simple reordering of tasks, changing the structure of a process never involves a change in resources.

81)

82) Microsoft Dynamics and Oracle are the highest ranked ERP vendors in the market.

82)

83) Dynamic processes support operational activities.

83)

84) In distributed systems, applications processing is distributed across multiple computing devices.

84)

85) Business process reengineering is a quick process but is exceedingly expensive.

85)

86) An ERP solution includes a database design, initial configuration data, and the company's operational data.

86)

87) The structure of a process has no bearing on its efficiency.

87)

88) Enterprise processes span an organization and support activities in multiple departments.

88)

12

89) Transitioning to a new enterprise system requires careful planning and substantial training.

89)

90) Both structured processes and dynamic processes are formally defined processes.

90)

91) Dynamic processes are standardized processes that involve day-to-day operations.

91)

92) The primary purpose of an ERP system is integration.

92)

93) Information systems can improve process quality by augmenting the actions of a human who is performing that activity.

93)

94) Adding process resources increases process effectiveness but adds costs.

94)

95) The procedures for using workgroup information systems need to be understood only by the IT department of an organization.

95)

96) Inter-enterprise systems can solve the problems of workgroup information silos but not those of enterprise silos.

96)

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

97) What are the three ways information systems improve process quality?

98) What are the four phases of the customer life cycle? Briefly describe each phase.

99) Discuss the challenge of requirements gaps when implementing new enterprise systems.

100) Define enterprise information systems and describe their characteristics.

101) In the context of new enterprise systems, how should organizations manage employee resistance to change?

102) What are some risks to using an enterprise system on a mobile device?

103) What is the fundamental problem of information silos? How can this problem be remedied?

104) List the problems associated with information silos.

105) List the functions of enterprise application integration (EAI).

106) Define ERP. What is the primary purpose of an ERP system?

107) Define dynamic processes and list their characteristics.

108) Describe the two categories of Enterprise Resource Planning (ERP) training.

109) Describe inter-enterprise information systems.

13

110) What are the two dimensions of process quality? How can organizations improve process quality? How do information systems improve process quality?

111) Explain the nature of the database component of an Enterprise Resource Planning (ERP) solution.

112) Define workgroup processes, enterprise processes, and inter-enterprise processes.

113) Define structured processes and list their characteristics.

14

Answer Key Testname: C8

1) C 2) B 3) A 4) C 5) C 6) E 7) D 8) C 9) A 10) A 11) A 12) D 13) C 14) A 15) D 16) B 17) E 18) B 19) D 20) C 21) C 22) E 23) E 24) C 25) A 26) A 27) B 28) B 29) D 30) C 31) A 32) E 33) A 34) A 35) E 36) C 37) A 38) D 39) B 40) D 41) E 42) E 43) E 44) A 45) E 46) B 47) C 48) D 49) D 50) C 15

Answer Key Testname: C8

51) E 52) E 53) C 54) E 55) A 56) E 57) E 58) B 59) C 60) A 61) C 62) C 63) B 64) C 65) A 66) A 67) D 68) TRUE 69) TRUE 70) TRUE 71) FALSE 72) TRUE 73) FALSE 74) TRUE 75) TRUE 76) TRUE 77) TRUE 78) FALSE 79) FALSE 80) TRUE 81) FALSE 82) FALSE 83) FALSE 84) TRUE 85) FALSE 86) FALSE 87) FALSE 88) TRUE 89) TRUE 90) FALSE 91) FALSE 92) TRUE 93) TRUE 94) TRUE 95) FALSE 96) FALSE 97) The three ways information systems can be used to improve process quality are: 1) performing an activity; 2) augmenting a human who is performing an activity; and 3) controlling data quality and process flow.

16

Answer Key Testname: C8

98) The four phases of the customer life cycle include: marketing, customer acquisition, relationship management, and loss/churn. Marketing sends messages to the target market to attract customer prospects. When prospects order, they become customers who need to be supported. Additionally, relationship management processes increase the value of existing customers by selling them more product. Inevitably, over time the organization loses customers. When this occurs, win-back processes categorize customers according to value and attempt to win back high-value customers.

99) Few organizations today create their own enterprise systems from scratch. Instead, they license an enterprise product that provides specific functions and features and that includes inherent procedures. But such licensed products are never a perfect fit. Almost always there are gaps between the organization's requirements and the application's capabilities. The first challenge is identifying the gaps. To specify a gap, an organization must know both what it needs and what the new product does. However, it can be very difficult for an organization to determine what it needs; that difficulty is one reason organizations choose to license rather than to build. Further, the features and functions of complex products like CRM or ERP are not easy to identify. Thus, gap identification is a major task when implementing enterprise systems. The second challenge is deciding what to do with gaps, once they are identified.

Either the organization needs to change the way it does things to adapt to the new application, or the application must be altered to match what the organization does. Either choice is problematic.

100) Enterprise information systems are information systems that span an organization and support activities in multiple departments. They typically have hundreds to thousands of users. Procedures are formalized and extensively documented; users undergo formal procedure training. The solutions to problems in an enterprise system usually involve more than one department. Because enterprise systems span many departments and involve potentially thousands of users, they are very difficult to change. Changes must be carefully planned, cautiously implemented, and users given considerable training. Sometimes users are given incentives and other inducements to motivate them to change.

101) First, senior-level management needs to communicate the need for the change to the organization and reiterate this, as necessary, throughout the transition process. Second, employees fear change because it threatens self-efficacy, which is a person's belief that he or she can be successful at his or her job. To enhance confidence, employees need to be trained and coached on the successful use of the new system. Word-of-mouth is a very powerful factor, and in some cases key users are trained ahead of time to create positive buzz about the new system. Video demonstrations of employees successfully using the new system are also effective. Third, in many ways, the primary benefits of a new ERP system are felt by the accounting and finance departments and the senior management. Many of the employees who are asked to change their activities to implement ERP will not receive any direct benefit from it. Therefore, employees may need to be given extra inducement to change to the new system. Implementing new enterprise systems can solve many problems and bring great efficiency and cost savings to an organization, but it is not for the faint of heart.

102) Employees want to use mobile devices to access and even modify enterprise system data. But mobile devices are just that—mobile. The enterprise system may be exposed to considerable risk while outside the control of the organization.

And ERP data is a juicy target for crime.

103) The fundamental problem of information silos is that data are duplicated in isolated systems. The most obvious fix is to integrate the data into a single database and revise applications (and business processes) to use that database. Another remedy is to allow the isolation, but to manage it to avoid problems.

104) The problems associated with information silos include: — Data duplication and data inconsistency — Disjointed processes — Limited information and lack of integrated information — Isolated decisions that lead to organizational inefficiencies — Increased expense 105) The functions of EAI are as follows: — It connects system "islands" via a new layer of software/system.

— It enables existing applications to communicate and share data.

— It provides integrated information.

— It leverages existing systems—leaving functional applications as is, but providing an integration layer over the top.

— It enables a gradual move to ERP. 17

Answer Key Testname: C8

106) Enterprise resource planning (ERP) is a suite of applications called modules, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform. An ERP system is an information system based on ERP technology. The primary purpose of an ERP system is integration; an ERP system allows the left hand of the organization to know what the right hand is doing. This integration allows real-time updates globally, whenever and wherever a transaction takes place. Critical business decisions can then be made on a timely basis using the latest data.

107) Dynamic processes are flexible, informal, and adaptive processes that normally involve strategic and less unstructured managerial decisions and activities. Deciding whether to open a new store location or how best to solve the problem of excessive product returns are examples, as is using Twitter to generate buzz about next season's product line.

The characteristics of dynamic processes are: 1. They support strategic and less structured managerial decisions and activities.

2. They are less specific and fluid.

3. They are usually informal.

4. Exceptions are frequent and expected.

5. They are adaptive processes that change structure rapidly and readily.

108) ERP vendors have developed training curricula and numerous classes because of the complexity and difficulty of implementing and using ERP solutions. ERP training falls into two broad categories. The first category is training about how to implement the ERP solution. This training includes topics such as obtaining top-level management support, preparing the organization for change, and dealing with the inevitable resistance that develops when people are asked to perform work in new ways. The second category is training on how to use the ERP application software.

109) Inter-enterprise information systems support one or more inter-enterprise processes. Such systems typically involve thousands of users, and solutions to problems require cooperation among different, usually independently owned organizations. Problems are resolved by meeting, by contract, and sometimes by litigation. Data are often duplicated between organizations; such duplication is either eliminated or is carefully managed. Because of their wide span, complexity, and use by multiple companies, such systems can be exceedingly difficult to change. Supply chain management is a classic example of an inter-enterprise information system.

110) The two dimensions of process quality are efficiency and effectiveness. Process efficiency is a measure of the ratio of process outputs to inputs. Process effectiveness is a measure of how well a process achieves organizational strategy.

Organizations can improve the quality (efficiency and/or effectiveness) of a process in one of three ways: — Change the process structure.

— Change the process resources.

— Change both process structure and resources.

Information systems can be used to improve process quality by: — Performing an activity.

— Augmenting a human who is performing an activity.

— Controlling data quality and process flow.

111) An ERP solution includes a database design as well as initial configuration data. It does not, of course, contain the company's operational data. During development, the team must enter the initial values for that data as part of the development effort. SAP, the leading vendor of ERP solutions, provides ERP databases that contain over 15,000 tables.

The design includes the metadata for those tables, as well as their relationships to each other, and rules and constraints about how the data in some tables must relate to data in other tables. The ERP solution also contains tables filled with initial configuration data.

Large organizational databases contain two types of program code. The first, called a trigger, is a computer program stored within the database that runs to keep the database consistent when certain conditions arise. The second, called a stored procedure, is a computer program stored in the database that is used to enforce business rules. An example of such a rule would be never to sell certain items at a discount. Triggers and stored procedures are also part of the ERP solution. Developers and business users need to configure the operation of such code during the ERP implementation as well.

18

Answer Key Testname: C8

112) A workgroup process is a structured process that exists to enable workgroups to fulfill the charter, purpose, and goals of a particular organizational unit. Enterprise processes are structured processes that span an organization and support activities in multiple departments. Inter-enterprise processes are structured processes that span two or more independent organizations.

113) Structured processes are formally defined, standardized processes that involve day-to-day operations: accepting a return, placing an order, purchasing raw materials, and so forth.

The characteristics of structured processes are: 1. They support operational and structured managerial decisions and activities.

2. They are standardized.

3. They are usually formally defined and documented.

4. Exceptions are rare and not (well) tolerated.

5. Their process structures change slowly and with organizational agony.

19

Exam Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) What is one feature that differentiates social media information systems (SMIS) from Web site applications?

A) SMIS has more users than a Web site.

B) SMIS do not use browsers.

C) SMIS has connection data.

D) A user has to login to a Web site to use the special features.

E) A user can comment on a Web site.

1)

2) The factors included in social capital evaluation are ________.

A) Social Capital = Number of Relationships * Relationship Strength * Entity Resources B) Social Capital = Number of Relationships / Relationship Strength x Entity Resources C) Social Capital = (Number of Relationships + Relationship Strength) x Entity Resources D) Social Capital = Number of Relationships + Relationship Strength + Entity Resources E) Social Capital = Number of Relationships + Relationship Strength / Entity Resources

2)

3) What factor(s) are included to determine the value of social capital?

A) The number of likes and forwards a person has in their social network.

B) The number of relationships in a social network, by the strength of those relationships, and by the number of resources controlled by those related.

C) The number of famous people who follow you.

D) The number of people you interact with on a daily basis by the number of times a post is followed.

E) The number of people who mention and tag you.

3)

4) All of the following are ways social capital adds value except ________.

A) personal reinforcement B) it allows to make more friends C) influence D) social credentials E) information

4)

5) Facebook is an example of a ________ because it provides a platform that enables the creation of social networks.

A) user B) marketing platform C) social media provider D) connection E) community

5)

6) In social media, ________ are the product.

A) businesses selling goods B) you C) all of the connected active users D) the number of users on the network E) active users

6)

1

7) The hardware component for social media information systems (SMIS) ________.

A) provides analytics B) provides a browser C) maintains applications D) provides elastic, cloud-based servers E) creates content for rapid retrieval

7)

8) How are social media communities formed?

A) They naturally occur.

B) They are formed based on location.

C) They are formed based on neighborhoods.

D) They are formed based on familial relationships.

E) They are formed based on mutual interests.

8)

9) ________ is the investment of resources for future profit.

A) Social media B) Capital C) Business to business D) Attending a business function E) The marketplace

9)

10) User generated content should only be deleted by the organization in all of the following cases except ________.

A) the comment is obscene B) the contribution is inappropriate because they are contributed by crackpots C) the comment has nothing to do with the site D) the comment is inappropriate content E) if the user community requests it

10)

11) To an organization, the ________ is the likelihood that the other entity in the relationship will do something that benefits the organization.

A) the strength of their employees B) the number of social media sites used C) acceptance of the executive board D) strength of the relationship E) number of pictures retweeted

11)

12) In the recent decades all of the following have altered existing communication channels except ________, A) email B) national newspapers C) cable TV D) Web sites E) smartphones

12)

2

13) All of the following are benefits to using social media to solve supply chain management problems except ________.

A) providing better solutions to problems B) faster problem solving C) the inability for management to catalog all of the solutions.

D) the numerous solution ideas generated.

E) the rapid evaluation of solutions

13)

14) Which of the following is the best way for organization employees to avoid a misstep when using social media?

A) Social media is so new, employees do not make missteps.

B) If a misstep occurs, shut down the social media site.

C) Hold annual security training for the employees.

D) Publicly punish any employee that misuses social media.

E) Display the company polices on the bulletin board.

14)

15) ________ is the use of emergent social software platforms within companies.

A) Web 3.0 B) Folksonomy C) Web 2.0 D) SLATES E) Enterprise 2.0

15)

16) Enterprise social networks have changed communication channels within corporations in all of the following dramatic ways except ________.

A) the ability for employees to quickly identify internal subject matter experts B) the ability to post ideas directly for the executive team to read C) the ability for employees to bypass managers D) the ability to collaborate with global teams E) the ability to create encrypted emails

16)

17) What is the most visible measure of your individual social capital?

A) Increased social media costs B) Decreased social media costs C) Number of relationships D) Increased sales E) Number of positive reviews

17)

18) What is one reason younger users are skeptical of organizational messages?

A) Younger users are more influenced by TV ads.

B) Younger users grew up with more sources of information.

C) Younger users prefer prepackaged organizational messages to learn about products.

D) Younger users do not feel comfortable with social media coming from organizations.

E) Younger users listen to their parents who are skeptical of organizational messages.

18)

19) ________ is defined as content structure that emerges from the processing of many user tags.

A) Extension B) Folksonomy C) Web 2.0 D) Enterprise social network E) Authoring

19)

3

20) ________ is a location service that allows applications to know when a user has crossed a specific location and then triggers an automated action.

A) GPS B) Paid advertising C) Geofencing D) Mobile ad services E) Wi-fi

20)

21) All of the following are common social media strategic goals except ________.

A) brand awareness B) frequency of Web site traffic C) extent to which users interact with the site.

D) conversion rates E) identifying the target audience

21)

22) What is one risk in supply chain problem solving via social media?

A) The lack of creation of viable solutions.

B) The tightly integrated structure of manufacturing processes.

C) The slowness of feedback from social media communities.

D) A company would be solving their problem in front of their competitor.

E) The inability to sort through all of the solutions coming from the community.

22)

23) All of these are ways to generate revenue using the freemium model except ________.

A) sale of virtual goods B) pay-per-click C) sale of apps D) donations E) affiliate commissions

23)

24) ________ is the dynamic social media process of employing users to participate in product design or product redesign.

A) Business-to-business relationships B) Supply chain management C) Business-to-consumer relationships D) Customer relationship management E) Crowdsourcing

24)

25) Jerry is using social media to market products directly to end users. This type of marketing is defined as ________.

A) real-time feedback B) businesses-to-consumer C) feedback loops D) crowdsourcing E) direct sales

25)

4

26) A question such as "Why should these users tweet about your products?" is identified under which social media development plan step?

A) Identify success metrics B) Define your goal.

C) Identify your target audience D) Define your value E) Gather data

26)

27) Which social media platform has the most active users?

A) LinkedIn B) Facebook C) Twitter

27)

D) Instagram

E) Snapchat

28) What is the second step in developing a practical social media plan?

A) Make personal connections B) Identify success metrics C) Define your goals D) Define your value E) Identify target audience

28)

29) All of the following are major sources of problems from external user-generated content except ________.

A) junk contributions B) crackpot contributions C) appropriate content D) unfavorable reviews E) mutinous movements

29)

30) Facebook is an example of a ________ because it provides a platform that enables the creation of social networks.

A) community B) user C) connection D) social media provider E) marketing platform

30)

31) ________ is the use of information technology to support the sharing of content among networks of users.

A) The world wide web B) Group connection C) Networking D) Social media E) The Internet

31)

32) All of the following are Enterprise 2.0 SLATES components except ________.

A) layers B) tags C) search D) authoring

32)

E) signals

33) All of the following analytical tools are ways to gather success metrics except ________.

A) Facebook Page Insights B) Google Analytics C) KISSmetrics D) Anecdotes from friends E) Clicky 5

33)

34) All of these are forms of advertising revenue on social media except ________.

A) pay-per-click B) paid search C) offer a basic service for free and then charge for upgrades D) digital video ads E) mobile ads

34)

35) ABC Corp is partnering with a company to offer ads. The company will show the ads for free and ABC Corp only pays if the customer visits the page from that ad. ABC Corp is using the ________.

A) freemium revenue model B) pay-per-click C) user contribution model D) digital video ads model E) business-to-consumer revenue model

35)

36) Which social media site would organizations use to search for expertise within the organization?

A) SharePoint B) Instagram C) LinkedIn D) Facebook E) Twitter

36)

37) A statement that delineates employees' rights and responsibilities is known as a(n) ________.

A) open policies plan B) index of social media rights C) social media policy D) statement of denial E) censorship plan

37)

38) Providing incentives for enterprise social network adoption and use is under the ________ best practice.

A) sponsorship B) support C) success metric D) success E) strategy

38)

39) What is a new position created because of social media?

A) Chief Information Officer (CIO) B) Chief Social Media Officer (CSM) C) Chief Privacy Officer (CPO) D) Chief Metrics Officer (CMO) E) Chief Digital Officer (CDO)

39)

40) All of the following are enterprise social network deployment best practices except ________.

A) strategy B) success C) sponsorship D) folksonomy E) support

40)

6

41) LinkedIn uses the ________ because regular users access LinkedIn for free but you can upgrade individual upgrades range from $29 a month to use services such as the ability to direct email messages to LinkedIn users outside one's network.

A) user contribution model B) freemium revenue model C) business-to-consumer revenue model D) pay-per-click E) digital video ads model

41)

42) All of the following are forms of promotion using social media information systems created by employees for customers except ________.

A) creating wikis B) creating frequently asked questions C) sites for user reviews D) create blogs E) answering phone calls

42)

43) Cocoa ________ in her social network because her opinion may force a change in others' behavior and beliefs.

A) is an influencer B) is a successful small business owner C) has social credentials D) tweets at least ten times per day E) rarely accepts friend requests

43)

44) A Kred score metric identifies with the ________ goal for social media metrics.

A) conversion rate B) brand awareness C) user engagement D) web site traffic E) key performance indicator

44)

45) What is the primary risk of peer-to-peer support in social media?

A) The cost B) Difficulty getting users to write reviews C) The short feedback loop D) Loss of control E) The demands on employees to provide reviews

45)

46) Julie explained to management that she only counts active users on the site and not only registered users. Measuring all of the registered users is considered a ________ and does not improve decision making.

A) quantity metric B) bounce rate C) vanity metric D) conversion rate E) success metric

46)

7

47) Which social media site would organizations use to hire the best people?

A) LinkedIn B) SharePoint C) Instagram D) Twitter E) Facebook

47)

48) ________ are measurements used to track performance.

A) Geofences B) Conversion rates C) Click stream data D) Key performance indicators E) Success metrics

48)

49) ________ measures the frequency that someone who clicks on an ad makes a purchase, "likes" a site, or takes some other action desired by the advertiser.

A) Freemium revenue model B) Digital ad spending C) Company revenue D) Conversion rate E) Business-to-consumer revenue model

49)

50) The Doggie Store created a "cutest dog" competition with a grand prize of a $100 gift certificate to the store and put it on their Instagram to create a ________.

A) viral hook B) group with mutual interests C) marketing platform D) media superstar E) social media community

50)

51) Organizations as social media users use the platforms to accomplish all of the following except ________.

A) hire people to maintain their social media presence B) promote products C) manager their image D) monitor employees E) build relationships

51)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

52) For social networking users, procedures are formal and socially oriented.

52)

53) A bounce rate is the percentage of people who visit your Web site and then purchase a product.

53)

54) Advertisers like digital ads because users can respond directly to Web ads by clicking on them.

54)

55) Younger users of social media are more trusting of the organizational messages.

55)

56) In general, the more technical the organization the more open and lenient the social policies.

56)

8

57) Business literature defines four types of capital.

57)

58) The social media flow can be diagrammed and designed because it is static.

58)

59) Companies should develop a social media policy for internal use.

59)

60) A potential problem with enterprise social networks is the quality of their state process.

60)

61) The general belief of social media providers is that the users wouldn't mind the "small" loss of privacy if they got the service for free.

61)

62) An organization can be a social media provider but not a social media user.

62)

63) Recruiters who notice poor grammar on social media sites tend to have a negative view of a potential candidate.

63)

64) Mobile users click ads less often than PC users.

64)

65) If you're unsure how your organization could add value, start by performing a competitive analysis to identify the strengths and weaknesses in your competitors' use of social media.

65)

66) Social media companies generate revenue with advertising and charging for premium services.

66)

67) Organizations should use the same process for creating a plan to use enterprise social networks internally as using social media networks externally.

67)

68) Because relationships emerge from a joint activity in social customer relationship management, customers have as much control as companies over what the customers read about a product.

68)

69) Organizations have social capital.

69)

70) A social media information system (SMIS) is an information system that supports the sharing of content among networks of users.

70)

71) Social media allows people to form communities.

71)

72) User-generated content (UGC) is the essence of SM relationships.

72)

73) The phrase, use increases value, means the more people use the site, the more value it has, and the more people will visit.

73)

74) Social capital can be earned and spent.

74)

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

75) Describe some recent internal risks from social media?

76) Describe the two most common ways social media generates revenue.

9

77) Define the three types of capital per business literature.

78) What factors should you consider when using social networking professionally?

79) List and describe the two categories of social media data.

80) Define geofencing and provide an example of how it may work.

81) Describe the role of a user of social media.

82) Describe how organizations can make personal connections with younger users.

83) How would an organization successfully deploy an enterprise social network (ESN)?

84) List and briefly describe the three key pillars of Intel's policy.

85) Describe how an organization can use a social media site such as LinkedIn to hire the best people.

86) Describe the difference between traditional CRM and social CRM. 87) Briefly discuss McAfee's SLATES Model in Enterprise 2.0 (ESN).

10

Answer Key Testname: C9

1) C 2) A 3) B 4) B 5) C 6) B 7) D 8) E 9) B 10) E 11) D 12) B 13) C 14) C 15) E 16) E 17) C 18) B 19) B 20) C 21) E 22) D 23) B 24) E 25) B 26) D 27) B 28) B 29) C 30) D 31) D 32) A 33) D 34) C 35) B 36) A 37) C 38) B 39) E 40) D 41) B 42) E 43) A 44) B 45) D 46) C 47) A 48) D 49) D 50) A 11

Answer Key Testname: C9

51) D 52) FALSE 53) FALSE 54) TRUE 55) FALSE 56) TRUE 57) FALSE 58) FALSE 59) TRUE 60) FALSE 61) TRUE 62) FALSE 63) TRUE 64) FALSE 65) TRUE 66) TRUE 67) TRUE 68) TRUE 69) TRUE 70) TRUE 71) TRUE 72) TRUE 73) TRUE 74) TRUE 75) First, the use of social media can directly affect the ability of an organization to secure its information resources. seemingly innocuous comments such as "married 20 years ago today in Dallas" can inadvertently leak information used to secure access to organizational resources. The information could be used to reset a password. Second, employees may inadvertently increase corporate liability when they use social media. Finally, increased use of social media can be a threat to employee productivity. Posts, tweets, pins, likes, comments, and endorsements all take time.

76) The two most common ways SM companies generate revenue are advertising and charging for premium services.

Most SM companies earn revenue through advertising. Advertising on SM can come in the form of paid search, display or banner ads, mobile ads, classifieds, or digital video ads. The freemium revenue model offers users a basic service for free and then charges a premium for upgrades or advanced features. LinkedIn earns part of its revenue by selling upgrades to its standard software as a service (SaaS) product. As of May 2018, regular users access LinkedIn for free; individual upgrades range from $29 to $99 a month and offer advanced search capabilities, greater visibility of user profiles, and more direct email messages to LinkedIn users outside one's network. Businesses that want to use LinkedIn for recruiting can purchase a Recruiter Corporate account for $120 to $1200 a month.

77) Business literature defines three types of capital. Karl Marx defined capital as the investment of resources for future profit. This traditional definition refers to investments into resources such as factories, machines, manufacturing equipment, and the like. Human capital is the investment in human knowledge and skills for future profit. According to Nan Lin, social capital is the investment in social relations with the expectation of returns in the marketplace.

78) So, when you use social networking professionally, consider these three factors. You gain social capital by adding more friends and by strengthening the relationships you have with existing friends. Further, you gain more social capital by adding friends and strengthening relationships with people who control resources that are important to you. Such calculations may seem cold, impersonal, and possibly even phony. When applied to the recreational use of social networking, they may be. But when you use social networking for professional purposes, keep them in mind.

79) SM data falls into two categories: content and connections. Content data is data and responses to data that are contributed by users. Connection data is data about relationships. On Facebook, for example, the relationships to your friends are connection data. SM providers store and retrieve SM data on behalf of users.

12

Answer Key Testname: C9

80) Example answers may vary. Companies can use geofencing to target customers with ads when they are physically on company premises. Geofencing is a location service that allows applications to know when a user has crossed a virtual fence (specific location) and then triggers an automated action. For example, suppose a user enters a coffee shop and her phone automatically connects to the free Wi-Fi. An app on her phone recognizes the coffee shop wireless network and pushes an in-store ad to her phone for a free donut. Her phone might also be able to use her cellular network to determine her location, and she could see that there's a sale on shoes at the outdoor mall down the street.

81) Users of social media do what they want to do depending on their goals and their personalities. They behave in certain ways and observe the consequences. They may or may not change their behavior. By the way, note that SM users aren't necessarily rational, at least not in purely monetary ways.

82) According to recent studies, younger users are more skeptical of organizational messages and may no longer listen to them. Such skepticism by younger consumers is understandable. They grew up with more sources of information and feel comfortable using social media. Skepticism of organizational messages gives a competitive advantage to organizations that can make personal connections with users via social media.

Today, people want informed, useful interactions that help them solve particular problems and satisfy unique needs. They increasingly ignore prepackaged organizational messages that tout product benefits.

This requires you to engage audience members, ask them questions, and respond to their posts. It also means you must avoid hard-selling products, overwhelming audience members with content, and contacting them too often.

83) The use of ESNs in organizations is new, and organizations are still learning how to use ESNs successfully Before deploying an ESN, organizations should develop a strategic plan for using SM internally via the same process they used for their external social media use. Once a strategic plan has been created, an ESN can then be implemented.

Deploying new systems—including ESNs—can be problematic, so the organization's strategic plan should be sure to address possible challenges, including the likelihood of employee resistance. In order to ensure a successful implementation of an ESN, organizations can also follow industry best practices, or methods that have been shown to produce successful results in prior implementations. When implementing an ESN, successful companies follow a process of four stages having the elements strategy, sponsorship, support, and success.

84) The three key pillars of Intel's policy in 2018 are: Disclose: your presence in social media must be transparent • Protect: take extra care to protect both Intel and yourself • Use Common Sense: remember that professional, straightforward, and appropriate communication is best.

85) Organizations use social media sites like LinkedIn to hire the best people more quickly and at a lower cost. For about $900 a month, recruiters can search through 433 million LinkedIn members to find the perfect candidate. The cost of hiring just one new employee runs around $5,000. If an independent recruiting company is involved, that cost can be as high as 10 percent of the new employee's salary. LinkedIn also gives employers access to passive candidates who might not be looking for a job but are a perfect fit for a particular position. Once the employee is hired, the employer can leverage that new employee's social network to hire more candidates just like him or her.

86) Social CRM flies in the face of the structured and controlled processes of traditional CRM. Because relationships emerge from joint activity, customers have as much control as companies. This characteristic is anathema to traditional sales managers who want structured processes for controlling what the customer reads, sees, and hears about the company and its products. Further, traditional CRM is centered on lifetime value; customers that are likely to generate the most business get the most attention and have the most effect on the organization. Traditional CRM ensured that the organization spoke to customers with one voice and that it controlled the messages, the offers, and even the support that customers received based on the value of a particular customer. However, with social CRM, the customer who spends 10 cents but who is an effective reviewer, commentator, or blogger can have more influence than the quiet customer who purchases $10M a year.

87) McAfee defined six characteristics that he refers to with the acronym SLATES. First, workers want to be able to search for content inside the organization just like they do on the Web. Second, workers want to access organizational content via links, just as they do on the Web. They also want to author organizational content using blogs, wikis, discussion groups, published presentations, and so on. The fourth characteristic of ESNs is that their content is tagged, just like content on the Web, and these tags are organized into structures Fifth, workers want applications that enable them to rate tagged content and to use the tags to predict content that will be of interest to them. Finally, workers to be signaled when something of interest to them happens in organizational content.

13

Exam Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) In a special version of asymmetric encryption, each site has a ________ for encoding messages.

A) botnet B) private key C) cookie D) public key E) cipher

1)

2) ________ occurs when computer criminals invade a computer system and replace legitimate programs with their own, unauthorized ones that shut down legitimate applications.

A) Spear Phishing B) Encryption C) Usurpation D) Phishing E) Spoofing

2)

3) Sarah was browsing an online shopping site when a program got downloaded onto her system without her knowledge. The next day she found that her search engine had been changed, and she received pop-up advertisements of the shopping site she had visited the previous day. The program on Sarah's system is ________.

A) a Trojan horse B) a cookie C) a stack smasher D) adware E) a payload

3)

4) ________ are viruses that masquerade as useful programs or files.

A) Trojan horses B) Spyware programs C) Adware programs D) Hydras E) Worms

4)

5) Key escrow is a(n) ________.

A) encryption algorithm that uses both public and private keys B) device that prevents unauthorized network access C) protocol used to secure communication over the internet D) the creation of related public and private keys E) safety procedure that allows a trusted party to have a copy of the encryption key

5)

1

6) Jason attempts to hack into a banking site to steal customer information. He finds the security of the Web site lacking and is able to access the site with ease. Jason is arrested the next day and charged with computer crime. The banking site was able to track Jason's IP address because he had unknowingly attacked a ________.

A) honeypot B) Trojan horse C) botnet D) hot site E) Web beacon

6)

7) All of the following are ways to avoid most malware except ________.

A) open email attachments only from known sources B) use public Wi-Fi C) update malware definitions D) install antivirus E) browse only reputable Web sites

7)

8) Which of the follow legal safeguards for data deals with the protection of consumer financial data stored by financial institutions.

A) Payment Card Industry Data Security Standard (DCI DSS) B) The Gramm-Leach-Bliley (GLB) Act C) Key Escrow D) Health Insurance Portability and Accountability Act (HIPAA) E) Privacy Principles

8)

9) A ________ examines each part of a message and determines whether to let that part pass.

A) nmap B) mail server C) private key D) wardriver E) packet-filtering firewall

9)

10) ________ occurs through human error when employees do not follow proper procedures or when procedures have not been well designed.

A) Loss of infrastructure B) Unauthorized data disclosure C) Incorrect data modification D) Denial of service E) Unauthorized data encryption

10)

11) Which of the following statements is TRUE about biometric identification?

A) It often faces resistance from users for its invasive nature.

B) It provides weak authentication.

C) It will decline in usage in the future.

D) It is a relatively inexpensive mode of authentication.

E) It involves the use of a personal identification number (PIN) for authentication.

11)

2

12) Which of the follow legal safeguards gives individuals the right to access health data created by doctors?

A) Payment Card Industry Data Security Standard (DCI DSS) B) The Gramm-Leach-Bliley (GLB) Act C) Key Escrow D) Privacy Principles E) Health Insurance Portability and Accountability Act (HIPAA)

12)

13) ________ are the primary means of authentication for a user's computer and other networks and servers to which the user may have access.

A) Personal identification numbers B) User names C) Passwords D) CA key rings E) Private keys

13)

14) Which of the following is a critical security function that should be addressed by the senior management of an organization?

A) reducing internal systems auditing B) sharing the private key with all systems connected to the network C) establishing the security policy D) avoiding the use of perimeter firewalls E) creating IS security software programs

14)

15) John has been appointed as an operations manager at a software company. Which of the following systems procedures will be John's responsibility?

A) creating a backup of system databases B) knowing whom to contact when a security breach occurs C) writing software program codes D) prepare for loss of system functionality E) using systems to perform job tasks

15)

16) The computers that run the DBMS and all devices that store database data should reside in locked, controlled-access facilities. This is done to ________.

A) prevent unauthorized encryption B) provide physical security C) stop SQL injection attacks D) prevent brute force attacks E) prevent email spoofing

16)

17) In information security, which of the following is TRUE about managing risk?

A) All risks should be eliminated.

B) All organizations except financial institutions should invest heavily in security safeguards.

C) Passwords are classified as technical safeguards.

D) Organizations should implement safeguards that balance the trade-off between risk and cost.

E) Physical security is classified as human safeguards.

17)

3

18) If an organization turns an employee's access off to the building while they are at lunch as a means of termination, this would be considered ________.

A) a hostile situation B) separation termination C) an unfriendly termination D) enforcement of company rules E) mean

18)

19) Which of the following is a sniffing technique?

A) denial of service B) adware C) IP spoofing D) port scanner E) caches

19)

20) Secure Sockets Layer is also known as ________.

A) Transport Layer Security B) Presentation Interface Layer C) Media Access Security D) Network Interface Layer Security E) Advanced Persistent Threat Layer

20)

21) Layla is purchasing a new laptop from an online vendor. Which of the following will be displayed in the address bar of his browser that will let her know that the online retailer is using the Secure Sockets Layer (SSL) protocol?

A) www B) smtp C) ftp D) .com E) https

21)

22) Which of the following statements is TRUE about the position definitions component of human safeguards?

A) All employees must be provided with uniform, general training on security regardless of the sensitivity of their positions.

B) Documenting position sensitivity enables security personnel to prioritize their activities based on possible risk.

C) Holding public users of Web sites accountable for security violations is easy and inexpensive.

D) System administrators should retain user accounts after an employee has been terminated.

E) Security considerations should not be part of the hiring process.

22)

23) What is a potential problem if there is a natural disaster?

A) property loss B) hacking C) theft D) terrorist activity E) accidents

23)

24) ________ are small files that enables a browser to access Web sites without having to sign in every time.

A) Payloads B) Botnets C) Public keys D) Web bugs E) Cookies

24)

4

25) ________ involve the people and procedure components of information systems.

A) Payloads B) Port scanners C) Technical safeguards D) Human safeguards E) Firewalls

25)

26) Sally has been working really hard lately and asks her manager for a raise. Her manager tells her that she is already the highest paid employee on the floor. Sally doesn't believe her manager, and illegally accesses the employee database to look at salary data. Sally's act can be termed as ________.

A) spoofing B) pretexting C) phishing D) skimming E) hacking

26)

27) All of the following are sources of threats except ________.

A) firewalls B) natural events C) natural disasters D) human error E) computer crime

27)

28) Which of the following is likely to be accepted by a poorly designed application thereby leading to improper disclosure of data?

A) SHA1 hash B) public key C) SQL injection D) key escrow E) asymmetric encryption

28)

29) Users of smart cards are required to enter a ________ to be authenticated.

A) personal identification number B) passphrase C) private key D) public key E) Social Security number

29)

30) ________ is a function pertaining to a particular database that develops procedures and practices to control and protect the database.

A) Data access control B) Database normalization C) Data encryption D) Data authentication E) Database administration

30)

31) Which of the following is a personal security safeguard?

A) storing browsing history, temporary files, and cookies B) sending valuable data only via email or IM C) disabling operating system updates D) using single password for all the sites E) removing high-value assets from computers

31)

5

32) In the context of security threats, pretexting, sniffing, spoofing, and phishing are all examples of ________.

A) faulty services B) loss of infrastructure C) incorrect data modification D) unauthorized data disclosure E) SQL injection

32)

33) Which of the follow legal safeguards for data deals with the secure storage and processing of credit card data?

A) The Gramm-Leach-Bliley (GLB) Act B) Payment Card Industry Data Security Standard (DCI DSS) C) Privacy Principles D) Health Insurance Portability and Accountability Act (HIPAA) E) Key Escrow

33)

34) Which of the following is most likely to be a result of hacking?

A) slowing of network speed B) certain Web sites being censored for hurting sentiments C) small amounts of spam in a user's inbox D) an unauthorized transaction from a user's credit card E) pop-up ads appearing frequently

34)

35) The process of hardening a Web site is a ________ safeguard.

A) technical B) financial C) virtual

D) physical

E) political

35)

36) In the context of malware protection, the program code that causes the unwanted actions is called the ________.

A) payload B) key escrow C) bundler D) bot herder E) kernel

36)

37) Which of the following is considered a computer crime?

A) accidental deletion of important records B) hacking of information systems C) failure to correctly back up customer data D) poorly written programs resulting in information loss E) loss of data as a result of flooding

37)

38) ________ present(s) the largest risk for an organization's infrastructure loss.

A) Electromagnetic pulse weapons B) Employees' dissatisfaction C) Natural disasters D) Competitors E) Hackers

38)

6

39) Stan loves collecting stamps. He receives an email that appears to come from a well-known stamp auction site asking him to reset his username and password. He clicks on the link and it takes him to a site that looks similar to the auction site, but the Web address is "scrambled" and unreadable.

He emails the customer service desk at the auction site and discovers they never sent the email.

This scenario is an example of attempted ________.

A) hacking B) wardriving C) phishing D) stack smashing E) sniffing

39)

40) PL Technologies suffered considerable data loss when its database was infected by a virus. George, an operations personnel, attempts to fix the damage by retrieving information from backed up data. George is involved in the process of ________.

A) hardening B) recovery C) systems hardening D) usurpation E) authentication

40)

41) According to the Ponemon Institute study, what is a most common type of attack?

A) Malicious code B) Stolen devices C) Phishing and social engineering D) Malware E) Denial of Service attacks

41)

42) Packet-filtering firewalls ________.

A) seldom examine the data or the addresses of the message B) can filter both inbound and outbound traffic C) examine the destination address but not the source address D) can examine the contents of VPN packets E) are the most complex type of firewall

42)

43) ________ protect databases and other organizational data.

A) Data strings B) Cookies C) Data tunnels D) Data safeguards E) Payloads

43)

44) Which of the following statements is TRUE about losses due to computer security threats?

A) Surveys suggest that some organizations do not report all their computer crime losses, and some will not report such losses at all.

B) Losses due to natural disasters can be measured accurately.

C) Losses due to hacking may be overstated.

D) Surveys on computer crimes provide accurate results since they use standard parameters to measure and tally computer crime costs.

E) Losses due to human error are insignificant.

44)

7

45) ________ refers to an organization-wide function that is in charge of developing data policies and enforcing data standards.

A) Data administration B) Data encryption C) Authentication D) Access Control E) Usurpation

45)

46) ________ is a technique for intercepting computer communications through a physical connection to a network or without a physical connection in the case of wireless networks.

A) Port scanning B) Sniffing C) Spoofing D) Pretexting E) Phishing

46)

47) Which of the following is used for biometric authentication?

A) facial features B) personal identification numbers C) MD5 hashes D) smart cards E) passwords

47)

48) Removing and disabling ________ that may contain sensitive security data presents an excellent example of the trade-off between improved security and cost.

A) bookmarks B) cookies C) toolbars D) pop-ups E) key loggers

48)

49) Which of the following statements is TRUE about data administration?

A) It applies to individuals and not to the entire organization.

B) It defines standards for the use of cryptographic suites.

C) It is involved in establishing data safeguards.

D) It is a line function to the chief information officer.

E) It merely involves developing data policies.

49)

50) With ________, the sender and receiver transmit a message using different keys.

A) symmetric encryption B) a block cipher C) a stream cipher D) asymmetric encryption E) a Caesar shift

50)

51) Which of the following is classified as a technical safeguard?

A) passwords B) key escrow C) firewalls D) training E) cookies

51)

8

52) Which of the following is considered a threat caused by human error?

A) a hacker breaking into a system to steal for financial gain B) an employee intentionally destroying data and system components C) an employee inadvertently installing an old database on top of the current one D) a virus and worm writer infecting computer systems E) a tsunami floods a data center causing total data loss

52)

53) All of the following should be in an incident-response plan except ________.

A) the person who caused the incident B) how employees respond to security problems C) the reports that should be created because of the incident D) how to reduce further loss E) who should be contacted in case of an incident

53)

54) Firewalls produce ________ that include lists of all dropped packets, infiltration attempts, and unauthorized access attempts from within the firewall.

A) blogs B) activity logs C) blackboxes D) Rich Site Summary (RSS) feeds E) honeypots

54)

55) ________ a Web site means to take extraordinary measures to reduce a system's vulnerability using special versions of the operating system.

A) Hardening B) Phishing C) Spooling D) Pretexting E) Spoofing

55)

56) ________ is a sophisticated, possibly long-running computer hack that is perpetrated by large, well-funded organizations such as governments.

A) State sponsored threat B) Advanced persistent threat C) Lengthy collective D) Poisoned pool E) Hacker collective

56)

57) ________ is a broad category of software that includes viruses, spyware, and adware.

A) Cookie B) Malware C) Crackers D) Firewall E) Spam

57)

58) Which of the following statements is TRUE about human safeguards for employees?

A) Companies should provide user accounts and passwords to employees prior to their security training.

B) User accounts should be defined to give users the least possible privilege needed to perform their jobs.

C) There shouldn't be a separation of duty and authority.

D) Security screening in an organization is a one-time process and applies only to new employees.

E) System administrators should retain user accounts after an employee has been terminated.

58)

9

59) Which of the following usually happens in a malicious denial-of-service attack?

A) A phisher pretends to be a legitimate company and requests confidential data.

B) A hacker floods a Web server with many millions of bogus service requests.

C) A hacker identifies vulnerabilities in network hosts.

D) An intruder uses another site's IP address to masquerade as that other site.

E) A hacker monitors and intercepts wireless traffic at will.

59)

60) When an employee is terminated, IS administrators should receive advance notice so that they can ________.

A) destroy the employee's records B) plan the recruitment of their positions C) clear the employee's browser history D) remove the user account and password E) disseminate information

60)

61) Many companies create ________, which are false targets for computer criminals to attack.

A) honeypots B) security checkpoints C) operational procedures D) hacker centers E) backups of company data

61)

62) All of the following are personal security safeguards except ________.

A) pop-ups B) regularly update antivirus software C) send no valuable data via email D) remove high-value assets from computers E) Use https

62)

63) A(n) ________ has a microchip in it to hold data.

A) dropper B) key escrow C) smart card D) cookie E) ATM card

63)

64) A ________ is a type of virus that self-propagates using the Internet or other computer network.

A) worm B) phisher C) Trojan horse D) sniffer E) mole

64)

65) ________ take computers with wireless connections through an area and search for unprotected wireless networks, and then monitor and intercept wireless traffic on unsecured wireless networks.

A) Pretexters B) Keyloggers C) Tibutors D) Phishers E) Wardrivers

65)

10

66) Nonword passwords are vulnerable to a ________ attack in which the password cracker tries every possible combination of characters.

A) sniffing B) denial-of-service C) nuanced D) phishing E) brute force

66)

67) Email spoofing is a synonym for ________.

A) phishing B) hacking C) baiting

67)

D) sniffing

E) usurping

68) Which of the following statements is TRUE about the Secure Sockets Layer (SSL)?

A) It is used to send sensitive data such as credit card numbers.

B) It uses asymmetric encryption exclusively.

C) It uses one set of encryption keys for multiple sessions.

D) It is used in wireless encryption suites.

E) It is a stronger version of https.

68)

69) A ________ is a person or an organization that seeks to obtain or alter data or other IS assets illegally, without the owner's permission and often without the owner's knowledge.

A) threat B) target C) key escrow D) vulnerability E) cipher

69)

70) A ________ is a string of bits used to encrypt data.

A) cookie B) cache C) key

70)

D) honeypot

E) cipher

71) A person claiming to be from central IT called Chris and asked him to participate in a password reset audit. The person had Chris change his password to the word "123456", and then again to a secret passphrase only Chris knew. Later that day Chris noticed odd system behavior, and then the system crashed. Chris was a victim of ________.

A) pretexting B) hacking C) usurping D) appropriating E) sniffing

71)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

72) Email spoofing is a synonym for phishing.

72)

73) A computer crime is committed if an employee inadvertently installs an old database on top of the current one.

73)

74) Improper data disclosure and data damage and loss are possible consequences of an SQL injection attack.

74)

75) Most spyware programs are benign in that they do not perform malicious acts or steal data.

75)

11

76) All of the studies on the cost of computer crime are based on surveys.

76)

77) Deleting browser cookies can make using your computer more difficult.

77)

78) Removing and disabling cookies presents an excellent example of the trade-off between improved security and cost.

78)

79) Data protection laws may be stronger in other countries than in the United States.

79)

80) Spoofing occurs when someone pretends to be someone else.

80)

81) Business requirements do not necessitate opening information systems to nonemployee personnel, such as temporary personnel, vendors, or partner personnel.

81)

82) Hardening a site means to take extraordinary measures to reduce a system's vulnerability.

82)

83) IP spoofing occurs when an intruder uses another site's IP address to masquerade as that other site.

83)

84) A denial-of-service attack is launched when a hacker takes computers with wireless connections through an area and searches for unprotected wireless networks.

84)

85) Faulty service excludes problems that result due to incorrect data modification.

85)

86) Secure Sockets Layer (SSL) is a protocol that is restricted to asymmetric encryption.

86)

87) Advanced persistent threats (APT) can be funded by governments.

87)

88) The losses due to human error are minimal, and hence, organizations tend to ignore these losses.

88)

89) Biometric authentication uses physical characteristics such as retinal scans to authenticate users.

89)

90) Organizations normally use one strong firewall to protect the network.

90)

91) Human error cannot cause unauthorized data disclosure.

91)

92) Symmetric encryption is simpler and much faster than asymmetric encryption.

92)

93) Technical safeguards involve the hardware and software components of an information system.

93)

94) Phishing is a technique for obtaining unauthorized data that uses pretexting via email.

94)

95) Documenting position sensitivity enables security personnel to prioritize their activities in accordance with the possible risk and loss.

95)

96) Every organization should have an incident-response plan as part of the security program.

96)

12

97) If the incident-response plan is not well-prepared, there is substantial risk that the actions of well-meaning people will make the problem worse.

97)

98) A magnetic strip holds far more data than a microchip.

98)

99) One of the personal security safeguards is to use https at trusted, reputable vendors.

99)

100) A Trojan horse is a virus that masquerades as a useful program or file.

100)

101) Most emails and IMs are protected by encryption.

101)

102) Cookies enable an individual to access Web sites without having to sign in every time.

102)

103) Natural disasters present the largest risk for infrastructure loss.

103)

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

104) Define encryption and explain symmetric and asymmetric encryption for computer systems.

105) What is key escrow?

106) Describe six malware safeguards.

107) Define threat, vulnerability, safeguard, and target.

108) Describe the difference between a perimeter firewall and an internal firewall?

109) List various personal security safeguards.

110) Describe the magnitude of security problems in the present day.

111) What is PRISM and what was the fallout when it was discovered?

112) What are the three general sources of security threats?

113) What is meant by denial of service?

114) Why does no one know the cost of computer crime?

115) How will computer crime change in the coming years?

116) Discuss some human safeguards for employees that can ensure the security of information systems.

117) What are spyware and adware programs?

118) Define pretexting, phishing, spoofing, and sniffing.

13

119) What is the basic information that a security policy must stipulate?

120) What is a virus? Differentiate between Trojan horses and worms.

121) How should organizations make trade-off decisions when it comes to assessing security threats?

122) How should organizations respond to security incidents?

14

Answer Key Testname: C10

1) D 2) C 3) D 4) A 5) E 6) A 7) B 8) B 9) E 10) C 11) A 12) E 13) C 14) C 15) A 16) B 17) D 18) C 19) B 20) A 21) E 22) B 23) A 24) E 25) D 26) E 27) A 28) C 29) A 30) E 31) E 32) D 33) B 34) D 35) A 36) A 37) B 38) C 39) C 40) B 41) D 42) B 43) D 44) A 45) A 46) B 47) A 48) B 49) C 50) D 15

Answer Key Testname: C10

51) C 52) C 53) A 54) B 55) A 56) B 57) B 58) B 59) B 60) D 61) A 62) A 63) C 64) A 65) E 66) E 67) A 68) A 69) A 70) C 71) A 72) TRUE 73) FALSE 74) TRUE 75) FALSE 76) TRUE 77) TRUE 78) TRUE 79) TRUE 80) TRUE 81) FALSE 82) TRUE 83) TRUE 84) FALSE 85) FALSE 86) FALSE 87) TRUE 88) FALSE 89) TRUE 90) FALSE 91) FALSE 92) TRUE 93) TRUE 94) TRUE 95) TRUE 96) TRUE 97) TRUE 98) FALSE 99) TRUE 100) TRUE 16

Answer Key Testname: C10

101) FALSE 102) TRUE 103) TRUE 104) Encryption is the process of transforming clear text into coded, unintelligible text for secure storage or communication.

To encrypt a message, a computer program uses the encryption method (say AES) combined with the key (say the word "key") to convert a plain text message (in this case the word "secret") into an encrypted message. The resulting coded message ("U2FsdGVkX1+b637aTP80u+y2WYlUbqUz2XtYcw4E8m4=") looks like gibberish. Decoding (decrypting) a message is similar; a key is applied to the coded message to recover the original text.

In symmetric encryption, the same key is used to encode and to decode the message. With asymmetric encryption, two keys are used; one key encodes the message, and the other key decodes the message.

105) An organization should protect sensitive data by storing it in encrypted form. Such encryption uses one or more keys.

One potential problem with stored data, however, is that the key might be lost or that disgruntled or terminated employees might destroy it. Because of this possibility, when data are encrypted, a trusted party should have a copy of the encryption key. This safety procedure is sometimes called key escrow.

106) It is possible for users to avoid most malware using the following malware safeguards: • Users should install antivirus and antispyware programs on the computer—The IS department will have a list of recommended programs for this purpose. When users choose a program for themselves, they should choose one from a reputable vendor. Reviews of antimalware software should be checked on the Web before purchasing.

• Users should set up the antimalware programs to scan the computer frequently—Users should scan their computers at least once a week and possibly more often. When they detect malware code, they should use the antimalware software to remove it. If the code cannot be removed, users should contact the IS department or antimalware vendor.

• Users should update malware definitions—Malware definitions are patterns that exist in malware code and should be downloaded frequently. Antimalware vendors update these definitions continuously, and users should install these updates as they become available.

• Users should open email attachments only from known sources—also, even when opening attachments from known sources, users should do so with great care. Most antimalware programs check email attachments for malware code.

However, all users should form the habit of never opening an email attachment from an unknown source. Also, if they receive unexpected emails from a known source or an email from a known source that has a suspicious subject, odd spelling, or poor grammar, users should not open the attachment without first verifying with the known source that the attachment is legitimate.

• Users should promptly install software updates from legitimate sources—unfortunately, all programs are chock full of security holes; vendors are fixing them as rapidly as they are discovered, but the practice is inexact. Users should install patches to the operating system and application programs promptly.

• Users should browse only reputable Web sites—It is possible for some malware to install itself when users do nothing more than open a Web page.

107) A threat is a person or organization that seeks to obtain or alter data or other IS assets illegally, without the owner's permission and often without the owner's knowledge.

A vulnerability is an opportunity for threats to gain access to individual or organizational assets. For example, when an individual buys something online, he or she provides his or her credit card data; when that data is transmitted over the Internet, it is vulnerable to threats.

A safeguard is some measure that individuals or organizations take to block the threat from obtaining the asset.

The target is the asset that is desired by the threat.

108) Organizations normally use multiple firewalls. A perimeter firewall sits outside the organizational network; it is the first device that Internet traffic encounters. In addition to perimeter firewalls, some organizations employ internal firewalls inside the organizational network.

17

Answer Key Testname: C10

109) The various personal security safeguards that one can implement for computer security: • One should take security seriously.

• One should create strong passwords.

• One should use multiple passwords.

• One should not send valuable data via email or IM. • One should use https at trusted, reputable vendors.

• One should remove high-value assets from computers.

• One should clear browsing history, temporary files, and cookies.

• One should update antivirus software.

• One should demonstrate security concern to one's fellow workers.

• One should follow organizational security directives and guidelines.

• One should consider security for all business initiatives.

110) The full extent of the financial and data losses due to computer security threats is unknown. Certainly, the losses due to human error are enormous, but few organizations compute those losses and even fewer publish them. Losses due to natural disasters are also enormous and impossible to compute. The earthquake in Japan, for example, shut down Japanese manufacturing, and losses rippled through the supply chain from the Far East to Europe and the United States. One can only imagine the enormous expense for Japanese companies as they restored their information systems.

111) In 2013, privacy advocates were outraged at the existence of PRISM, the intelligence program by which the National Security Agency (NSA) requested and received data about Internet activities from major Internet providers. They claimed their privacy, or freedom from being observed by other people, was being destroyed in the name of security, the state of being free from danger.

112) A security threat is a challenge to the integrity of information systems that arises from one of three sources: human errors and mistakes, computer crime, and natural events and disasters. Human errors and mistakes include accidental problems caused by both employees and nonemployees. Computer crime includes employees and former employees who intentionally destroy data or other system components. It also includes hackers who break into a system and virus and worm writers who infect computer systems. Natural events and disasters include fires, floods, hurricanes, earthquakes, tsunamis, avalanches, and other acts of nature. Problems in this category include not only the initial loss of capability and service, but also losses stemming from actions to recover from the initial problem.

113) Human error in following procedures, or a lack of procedures, can result in denial of service. For example, humans can inadvertently shut down a Web server or corporate gateway router by starting a computationally intensive application. Computer criminals can launch an intentional denial-of-service attack in which a malicious hacker floods a Web server, for example, with millions of bogus service requests that so occupy the server that it cannot service legitimate requests. Finally, natural disasters may cause systems to fail, resulting in denial of service.

114) For one, there are no standards for tallying crime costs. Does the cost of a denial-of-service attack include lost employee time, lost revenue, or long-term revenue losses due to lost customers? Or, if an employee loses a $2,000 laptop, does the cost include the value of the data that was on it? Does it include the cost of the time of replacing it and reinstalling software? Or, if someone steals next year's financial plan, how is the cost of the value that competitors glean determined?

Second, all the studies on the cost of computer crime are based on surveys. Different respondents interpret terms differently, some organizations don't report all their losses, and some won't report computer crime losses at all. Absent standard definitions and a more accurate way of gathering crime data, we cannot rely on the accuracy of any particular estimate. The most we can do is look for trends by comparing year-to-year data, assuming the same methodology is used by the various types of survey respondents.

18

Answer Key Testname: C10

115) Computer crime is a game of cat and mouse. Computer criminals find a vulnerability to exploit, and they exploit it.

Computer security experts discover that vulnerability and create safeguards to thwart it. Computer criminals find a new vulnerability to exploit, computer security forces thwart it, and so it goes. The next major challenges will likely be those affecting mobile devices. However, security on these devices will be improved as threats emerge that exploit their vulnerabilities. This cat-and-mouse game is likely to continue for at least the next 10 years. No super-safeguard will be devised to prevent computer crime, nor will any particular computer crime be impossible to thwart. However, the skill level of this cat-and-mouse activity is likely to increase, and substantially so. Because of increased security in operating systems and other software, and because of improved security procedures and employee training, it will become harder and harder for the lone hacker to find some vulnerability to exploit—not impossible, but vastly more difficult.

116) Human safeguards involve the people and procedure components of information systems. In general, human safeguards result when authorized users follow appropriate procedures for system use and recovery. Restricting access to authorized users requires effective authentication methods and careful user account management. In addition, appropriate security procedures must be designed as part of every information system, and users should be trained on the importance and use of those procedures.

The various human safeguards for employees are: Position Definitions—It is impossible to have effective human safeguards unless job tasks and responsibilities are clearly defined for each employee position. In general, job descriptions should provide a separation of duties and authorities.

Hiring and Screening—Security considerations should be part of the hiring process. When hiring for high-sensitivity positions, extensive interviews, references, and background investigations are appropriate.

Dissemination and Enforcement—Employees need to be trained on security policies, procedures, and the responsibilities they will have. Employee security training begins during new-employee training, with the explanation of general security policies and procedures. That general training must be amplified in accordance with the position's sensitivity and responsibilities.

Termination—Companies also must establish security policies and procedures for the termination of employees.

Standard human resources policies should ensure that system administrators receive notification in advance of the employee's last day, so that they can remove accounts and passwords. Procedures for recovering keys for encrypted data and any other security assets must be part of the employee's out-processing.

117) Spyware programs are installed on the user's computer without the user's knowledge or permission. Spyware resides in the background and, unknown to the user, observes the user's actions and keystrokes, monitors computer activity, and reports the user's activities to sponsoring organizations. Some malicious spyware, called key loggers, captures keystrokes to obtain user names, passwords, account numbers, and other sensitive information.

Adware is similar to spyware in that it is installed without the user's permission and that it resides in the background and observes user behavior. Most adware is benign in that it does not perform malicious acts or steal data. It does, however, watch user activity and produce pop-up ads. Adware can also change the user's default window or modify search results and switch the user's search engine.

118) Pretexting occurs when someone deceives by pretending to be someone else. A common scam involves a telephone caller who pretends to be from a credit card company and claims to be checking the validity of credit card numbers.

Phishing is a similar technique for obtaining unauthorized data that uses pretexting via email. The phisher pretends to be a legitimate company and sends an email requesting confidential data, such as account numbers, Social Security numbers, account passwords, and so forth.

Spoofing is another term for someone pretending to be someone else. IP spoofing occurs when an intruder uses another site's IP address to masquerade as that other site.

Sniffing is a technique for intercepting computer communications. With wired networks, sniffing requires a physical connection to the network. With wireless networks, no such connection is required.

19

Answer Key Testname: C10

119) At a minimum, a security policy should stipulate: • What sensitive data the organization will store • How it will process that data • Whether data will be shared with other organizations • How employees and others can obtain copies of data stored about them • How employees and others can request changes to inaccurate data 120) A virus is a computer program that replicates itself.

• Trojan horses are viruses that masquerade as useful programs or files.

• A worm is a virus that self-propagates using the Internet or other computer network.

121) To make trade-off decisions, organizations need to create an inventory of the data and hardware they want to protect and then evaluate safeguards relative to the probability of each potential threat. Given this set of inventory and threats, the organization needs to decide how much risk it wishes to take or, stated differently, which security safeguards it wishes to implement.

122) First, every organization should have an incident-response plan as part of the security program. No organization should wait until some asset has been lost or compromised before deciding what to do. The plan should include how employees are to respond to security problems, whom they should contact, the reports they should make, and steps they can take to reduce further loss. An incident-response plan will stipulate what an employee should do when he or she notices the virus. It should specify whom to contact and what to do. It may stipulate that the employee should turn off his or her computer and physically disconnect from the network. The plan should also indicate what users with wireless computers should do. When an incident does occur, speed is of the essence. The longer the incident goes on, the greater the cost. Viruses and worms can spread very quickly across an organization's networks, and a fast response will help to mitigate the consequences. Because of the need for speed, preparation pays. The incident-response plan should identify critical personnel and their off-hours contact information. These personnel should be trained on where to go and what to do when they get there. Finally, organizations should periodically practice incident response.

Without such practice, personnel will be poorly informed on the response plan, and the plan itself may have flaws that only become apparent during a drill.

20

Exam Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Which of the following is a function of the technology office in an organization's information systems (IS) department?

A) creating new information systems B) securing existing information systems C) investigating new information systems D) maintaining existing information systems E) managing computing infrastructure

1)

2) Which of the following statements is TRUE about a data administration staff function?

A) This is a subgroup under technical sales.

B) The chief technology officer (CTO) heads the data administration staff function.

C) This group includes system and network administrators exclusively.

D) The group establishes standards to protect information assets.

E) This group manages the process of creating new information systems.

2)

3) Which of the following is a form of outsourcing hardware infrastructure?

A) Software as a Service (SaaS) B) acquiring licensed products C) business function D) Infrastructure as a service (IaaS) cloud hosting E) PBaaS (Business Process as a Service)

3)

4) The responsibilities of a person in the ________ group include selling software, network, communications, and consulting services.

A) consultant B) systems analyst C) technical sales D) programmer E) server administrator

4)

5) Which of the following statements is TRUE of the operations group in an organization's information system (IS) department?

A) It includes technical writers if the programs are developed in-house.

B) It establishes data standards and data management practices and policies.

C) It manages all computing infrastructure except in-house server farms and communications media.

D) It manages all outsourcing.

E) It monitors the user experience and responds to their problems.

5)

1

6) If an organization does not develop programs in-house, then the development group of the information system (IS) department will be staffed primarily by ________ who work with users, operations, and vendors to acquire and install licensed software and to set up the system components around that software.

A) programmers and development personnel B) technical writers C) PQA test engineers D) penetration testers E) business and systems analysts

6)

7) In the information system (IS) department, the ________ group exists in organizations that have negotiated outsourcing agreements with other companies to provide equipment, applications, or other services.

A) operations B) outsourcing relations C) development D) technology E) networking

7)

8) A(n) ________ is a group of senior managers from the major business functions that works with the chief information officer (CIO) to set the information systems (IS) priorities and decide among major IS projects and alternatives.

A) IS department B) directors committee C) discussion forum D) steering committee E) tiger team

8)

9) In the information system (IS) department, the ________ group manages the process of creating new information systems as well as maintaining existing information systems.

A) operations B) technology C) development D) networking E) outsourcing relations

9)

10) All of the following are loss of control risks except ________.

A) high unit cost forever B) technology direction C) vendor in driver's seat D) identity changes E) enhancements in wrong priority

10)

11) The purpose of a ________ group is to protect data and information assets by establishing data standards and data management practices and policies.

A) data administration B) data mining C) data auditors D) data warehousing E) data communication

11)

2

12) SFA Inc. has a team of ten information systems (IS) personnel. The personnel are kept busy throughout the day as they help employees solve even the most trivial issues. In which of the following ways can the employees assist the IS personnel in this scenario?

A) by installing security programs by themselves B) by learning basic computer skills C) by sharing their passwords with others to use their help in solving those trivial issues D) by making hardware modifications E) by setting up their own data backup schedules

12)

13) Outsourcing is done to ________.

A) enhance management's focus on nonessential functions B) increase systems integrity C) cap an organization's financial exposure D) increase costs for outsourcing vendors E) diversify the business portfolio

13)

14) The information technology department is frustrated because they are constantly training one group on the same issue. The department manager reports it is the ________ to learn the system and not expect repetitive training.

A) common courtesy B) vendor's responsibility C) users' responsibility D) users' right E) a network problem

14)

15) Which of the following is an example of outsourcing an entire business function?

A) paying another organization to arrange for employee travel B) acquiring virtualization technologies C) acquiring licensed security software instead of developing it in-house D) making customizations to licensed software E) buying new hardware the reduces internal labor costs

15)

16) Who does the CSO report to in the organization?

A) The Chief Executive Officer (CEO).

B) The Board of Directors C) Directly to the consumer D) The Chief Information Security Office (CISO) E) The Chief Information Officer (CIO)

16)

17) All of the following are major IS planning functions except ________.

A) develop IS priorities within the IS department.

B) communicate IS/IT issues to the executive group.

C) sponsor steering committee.

D) align information systems with organizational strategy.

E) choose the project team.

17)

3

18) The ________ is the representative for information systems (IS) and information technology (IT) issues within the executive staff who provides the IS perspective during discussions of problem solutions, proposals, and new initiatives.

A) chief executive officer B) chief information security officer C) chief information officer D) chief operating officer E) chief technology officer

18)

19) Which of the following is an outsourcing alternative in which hardware and both operating system and application software are leased?

A) licensed software B) virtualization C) Infrastructure as a Service (IaaS) cloud hosting D) Software as a Service (SaaS) E) a bare metal installation

19)

20) Developing, operating, and maintaining an organization's computing infrastructure is a major function of the ________ department.

A) human resources B) information systems C) manufacturing D) marketing E) accounting

20)

21) The responsibilities of a ________ include collaborating with cross-functional teams on projects and analyzing organizational data.

A) technical sales B) consultant C) server administrator D) business intelligence analyst E) systems analyst

21)

22) ________ outsourcing is particularly advantageous for customer support and other functions that must be operational 24/7.

A) International B) Saas C) Business function D) Paas E) System-wide

22)

23) Which of the following statements is TRUE about outsourcing?

A) It invariably leads to diseconomies of scale.

B) It increases budgetary instability due to the level of risk involved.

C) It saves both direct and indirect management time.

D) It guarantees a higher level of quality than that provided in-house.

E) It increases implementation risk.

23)

4

24) Linela Insurance needs to hire twenty accountants immediately to support its accounts receivable process. The hiring and training of the accountants requires a significant investment of funds and time, which the company cannot afford. Linela decides to hire another accounting firm to manage its accounts receivable process and thereby save time and money. This process is known as ________.

A) headhunting B) merging C) diversifying D) outsourcing E) specializing

24)

25) The responsibilities of a tech support engineer include ________.

A) advising the chief information officer on emerging technologies B) helping users solve problems and providing training C) managing and protecting databases D) design and write computer programs E) writing program documentation

25)

26) Jamie's company manufactures 3D printers, and his job is to prepare user manuals for the products.

Jamie also prepares training material for the workers who are involved in the manufacturing process. With reference to his job profile, Jamie is a ________.

A) programmer B) server administrator C) consultant D) technical writer E) systems analyst

26)

27) Which of the following is a responsibility of a chief information officer (CIO)?

A) overseeing the Chief Security Officer (CSO) B) evaluating new technologies that are relevant to the organization C) serving as the principal manager of the IS department D) heading the technology group E) developing processes and information systems (IS) that implement business strategy

27)

28) KPL Inc. is an outsource vendor. It handles the recruiting process for Numero Uno Computers. KPL recently changed its business strategy to a more profit-oriented one. This modification would require the company to charge more for its services. This change will be a ________ risk for Numero Uno Computers.

A) loss of control B) de facto sole source C) no easy exit D) benefits outweighed by long-term costs E) high unit cost

28)

29) Which of the following is a risk of outsourcing information systems (IS)/information technology (IT) functions?

A) It is easier to end an agreement between a vendor and an organization that hired the vendor.

B) the vendor and organization will share the same goals.

C) It involves the potential loss of intellectual capital.

D) It provides the hiring organization with too many choices.

E) It invariably results in diseconomies of scale.

29)

5

30) Which of the following statements is TRUE about users of information systems?

A) They can avoid security and backup procedures.

B) They should learn how to recover the data and systems they use.

C) They should learn to install hardware and software on their own.

D) They have a responsibility to protect their computers from viruses by installing their choice of antivirus software.

E) They should learn standard techniques and procedures for the applications they use.

30)

31) Which of the following statements is TRUE about the steering committee of the information systems (IS) department?

A) The steering committee is composed of developers and auditors.

B) The steering committee's schedule and agenda are typically set by the chief executive officer (CEO) and other members of the executive staff.

C) The steering committee's meetings are conducted by the IS department.

D) The steering committee is comprised of employees from the IS department in an organization.

E) The steering committee's membership is determined by the IS department.

31)

32) Thompson is the chief information officer at a processed food manufacturing company. The information systems used in the company are manufacturing oriented and provide little support to accounting. In this case, Thompson will most likely report to the ________ of the company.

A) chief technology officer B) chief information security officer C) chief executive officer D) chief financial officer E) director of information services

32)

33) Which of the following statements is TRUE about information systems (IS) planning functions?

A) The steering committee represents the IS department exclusively in high-level discussions.

B) The chief executive officer (CEO) and other executive staff decide the membership of the steering committee.

C) The information systems (IS) department's priorities are developed by the chief executive officer (CEO).

D) The chief operating officer (COO) is the sole representative for IS and IT issues within the executive staff.

E) The CISO determines the composition of the steering committee.

33)

34) Every information systems (IS) user has the right to a secure computing environment. This means that the ________.

A) user will never face a network problem B) user should solely be in charge of protecting the organization's computers and files C) organization should protect his/her computer and its files D) user should be in charge of applying system patches E) user should inform the IS about software upgrades

34)

35) A ________ monitors, maintains, fixes, and tunes computer networks.

A) chief information security officer B) network administrator C) chief security officer D) server administrator E) systems analyst

35)

6

36) Why did Target Corp. create a new C-level security position?

A) Because all the corporations were creating C-level security positions.

B) Because they lost 98 million customer accounts.

C) Target did not create a C-level security position.

D) Because it is required by the government to have a top-level security position.

E) Because the CEO has too much work to do.

36)

37) A ________ manages security for all of the organization's assets: physical plant and equipment, employees, intellectual property, and digital.

A) chief security officer B) systems analyst C) network administrator D) chief information security officer E) server administrator

37)

38) Atlanta Technologies outsourced its information technology (IT) support department to a vendor in China. The vendor company, however, faced repeated instances of software failure and now needs to make some changes to the information systems. Who among the following has control over prioritizing issues related to such changes?

A) the chief technology officer at Atlanta (CTO) B) the chief information security officer at Atlanta (CISO) C) a third-party technician D) the vendor E) the chief information officer at Atlanta (CIO)

38)

39) Which of the following statements is TRUE of the information systems (IS) department?

A) Data backup is performed primarily by the marketing group.

B) Data administration is performed exclusively by the outsourcing relations group.

C) The operations group monitors user experience and responds to user problems.

D) If the IS primarily support accounting and finance activities, the chief financial officer (CFO) is appointed as the chief information officer (CIO).

E) Programs used in all information systems are developed in-house by the maintenance group.

39)

40) A ________ manages security for the organization's information systems and information.

A) server administrator B) chief security officer C) systems analyst D) network administrator E) chief information security officer

40)

41) Which of the following is a function of the steering committee for the information systems (IS) department?

A) performance testing B) adapting software C) writing program code D) setting IS priorities E) imparting training

41)

7

42) In the year 2031, what will organizations need to do to effectively engage their employees?

A) Provide all of their employees with mobile devices B) Use social media C) Fight to keep a competitive advantage D) Employ only robots E) Create more technology related strategies

42)

43) In an information systems (IS) department, the ________ group manages computing infrastructure, including individual computers, in-house server farms, networks, and communications media.

A) operations B) maintenance C) development D) network E) technology

43)

44) Which of the following is a right of users of information systems?

A) right to make hardware modifications when desired B) right to receive effective training C) right to obtain the configuration of their choice D) right to use the operating system of your choice E) right to install programs and applications of their choice

44)

45) Which of the following is a limitation of aligning information systems (IS) with organizational strategy?

A) Aligning the IS direction with the organizational strategy occurs only when the divisions are sold.

B) The steering committee provides a strong technical support base for users.

C) The steering committee provides a forum for the IS department to voice its complaints about the users.

D) Aligning the IS direction with the organizational strategy occurs only when organizations merge.

E) Adapting the IS to new versions of business processes is complex and time-consuming.

45)

46) Which of the following is generally a responsibility of users of information systems (IS)?

A) following security and backup procedures B) installing unauthorized programs C) reporting trivial problems D) replacing legacy systems with improved ones E) installing unauthorized hardware

46)

47) Which of the following is a form of outsourcing?

A) ANP Infotech updating its data standards to protect its information assets B) ANP Infotech acquiring licensed manufacturing software from a vendor C) ANP Infotech retraining internal employees D) ANP Infotech customizing its information systems E) ANP Infotech buying off-the-shelf software from a vendor

47)

8

48) All of the following are reasons to outsource except to ________.

A) obtain expertise B) avoid management problems C) cap financial exposure D) reduce implementation risk E) obtain full-time services

48)

49) The responsibilities of a ________ include advising the chief information officer, executive group, and project managers on emerging technologies.

A) systems analyst B) programmer C) chief financial officer D) technical writer E) chief technology officer

49)

50) Which of the following statements is TRUE about the changes and developments foreseen by the year 2031?

A) Most organizations will move their internal hardware infrastructure into the cloud.

B) Nearly all information security problems will be solved by using more powerful AI. C) Software development lifecycle (SDL.C will be typically used for systems development.

D) Running a computer center will be the most promising career in each one's life.

E) Small computing devices will lose their popularity and become more expensive.

50)

51) A ________ works with users to determine system requirements, designs and develops job descriptions and procedures, and helps determine test plans.

A) business analyst B) systems analyst C) server administrator D) network administrator E) user support representative

51)

52) Which of the following statements is TRUE of outsourcing?

A) Management should have expertise on a subject before it can decide to outsource.

B) An outsource vendor transfers the responsibility of risk management to the development group.

C) There is little risk of losing intellectual capital.

D) To achieve quality, it is easier to hire another vendor than it is to fire and rehire internal staff.

E) Outsourcing leads to increased financial risk.

52)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

53) The purpose of the data administration group is to protect data and information assets by establishing data standards and data management practices and policies.

53)

54) Maintaining alignment between information systems direction with organizational strategy is a continuing process.

54)

55) In the context of outsourcing, once a company has chosen a vendor, further risk management is up to that vendor.

55)

9

56) Freeing up management time is a reason that some companies choose to outsource.

56)

57) By the year 2031, your co-worker may be a synthetic coworker.

57)

58) The structure of the information systems (IS) department remains constant across organizations.

58)

59) Information technology (IT) must be placed into the structure of information systems (IS) before an organization can use it.

59)

60) It is reasonable for information systems (IS) users to expect to receive repetitive training and support for the same issue.

60)

61) There is seldom any concern about the loss of intellectual capital with outsourcing.

61)

62) One of the major functions of the information systems (IS) department is to develop, operate, and maintain applications.

62)

63) Acquiring licensed software is a form of outsourcing.

63)

64) The chief information officer (CIO) is the representative for information systems (IS) and information technology (IT) issues within the executive staff.

64)

65) There will most likely be a decline in the use of mobile devices at work in the next 10 years.

65)

66) Outsourcing neither saves time for direct management, nor for indirect management.

66)

67) The chief information officer (CIO) provides the information systems (IS) perspective during discussions of problem solutions, proposals, and new initiatives.

67)

68) An organization reduces implementation risk by outsourcing information systems (IS).

68)

69) To work in the information systems (IS) industry, a consultant should have an entrepreneurial attitude and communications and people skills.

69)

70) Information systems (IS) users have a responsibility to follow security and backup procedures.

70)

71) Information systems (IS) must evolve as the organization merges with other organizations or as divisions are sold.

71)

72) With the exception of systems analysts, all the major job positions in the information systems (IS) industry require business knowledge.

72)

73) It is impossible to cap financial risk by outsourcing.

73)

74) The information systems (IS) department determines the membership of a steering committee.

74)

75) It is the chief information officer's responsibility to establish and communicate the information systems (IS) priorities to the executive group.

75)

10

76) The process of hiring another organization to perform a service is known as outsourcing.

76)

77) The acquisition and operation of hardware infrastructure can be outsourced.

77)

78) In the information systems (IS) industry, a business analyst works with business leaders to develop systems that implement business strategy and goals.

78)

79) If your employer has a policy concerning use of personal mobile devices at work, you are responsible for following it.

79)

80) In all companies, the chief information officer (CIO) reports directly to the chief financial officer.

80)

81) Adapting information systems (IS) to new versions of business processes is a quick process.

81)

82) Installation of unauthorized hardware and programs may interfere with automated maintenance programs used for upgrading a user's computer.

82)

83) All information systems positions deal with programming.

83)

84) To work in the information systems (IS) industry, a network administrator should have good diagnostic skills, in-depth knowledge of communications technologies and products.

84)

85) Adapting IS to new versions of business processes is easy and quick.

85)

86) In 10 years, mixed-reality devices will be commonplace.

86)

87) By 2031, companies will no longer be concerned about security and therefore, will opt to keep data on their own, privately controlled servers.

87)

88) If the outsource vendor's employees have gained significant knowledge of the company, ending the agreement is a major risk.

88)

89) In 2031 sharing and stealing confidential data will be much easier.

89)

90) An organization should protect a user's computer and its files.

90)

91) The chief executive officer (CEO) and other members of the executive staff usually set up the steering committee's schedule and agenda.

91)

92) The terms "information systems" and "information technology" can be used interchangeably.

92)

93) The chief technology officer (CTO) manages the IS security program, protects the organization's information systems and information, and manages IS security personnel.

93)

94) A steering committee is a group of senior managers from the major business functions that works with the chief information officer (CIO) to set the information systems (IS) priorities.

94)

11

95) The steering committee provides a forum for users to express their needs, frustrations, and other issues they have with the information systems (IS) department.

95)

96) In the information systems (IS) industry, a technical writer develops test plans, and designs and writes automated test scripts.

96)

97) The steering committee serves an important communication function between the executive group and the users of the information systems (IS).

97)

98) Most organizations will move their internal hardware infrastructure to the cloud in the next decade.

98)

99) If an organization does not develop programs in-house, then the development group of the information systems (IS) department will include programmers, test engineers, and technical writers.

99)

100) Outsourcing does not present any risks related to ending an agreement.

100)

101) Replacing an outsource vendor, who is integrated into the business, can be done without a lot of expenditure or duplication of effort.

101)

102) Once the contract for outsourcing ends, it is very easy to exit from the vendor.

102)

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

103) Describe the loss of control associated with outsourcing.

104) How does outsourcing facilitate risk reduction?

105) What is outsourcing? Explain the management advantages of outsourcing.

106) Explain how the benefits of outsourcing are outweighed by its long-term costs.

107) List the major functions of the information systems (IS) department.

108) Describe some of the advantages of outsourcing internationally.

109) Describe a steering committee and explain the role of the chief information officer (CIO) in the steering committee.

110) List the rights of users of information systems.

111) Describe the different outsourcing alternatives for hardware, software, data, and procedures.

112) Explain the risks associated with ending an outsourcing agreement.

113) Describe the chief information officers, or CIO's typical reporting relationships.

114) How does outsourcing help reduce costs?

12

115) List any four responsibilities of users of information systems (IS).

116) Name the four groups found in typical information systems (IS) department, and explain the major responsibilities of each.

117) Describe the typical responsibilities of a chief technology officer (CTO).

118) Explain the major information systems (IS) planning functions.

13

Answer Key Testname: C11

1) C 2) D 3) D 4) C 5) E 6) E 7) B 8) D 9) C 10) A 11) A 12) B 13) C 14) C 15) A 16) A 17) E 18) C 19) D 20) B 21) D 22) A 23) C 24) D 25) B 26) D 27) C 28) A 29) C 30) E 31) C 32) C 33) B 34) C 35) B 36) B 37) A 38) D 39) C 40) E 41) D 42) B 43) A 44) B 45) E 46) A 47) B 48) E 49) E 50) A 14

Answer Key Testname: C11

51) B 52) D 53) TRUE 54) TRUE 55) TRUE 56) TRUE 57) TRUE 58) FALSE 59) TRUE 60) FALSE 61) FALSE 62) TRUE 63) TRUE 64) TRUE 65) FALSE 66) FALSE 67) TRUE 68) TRUE 69) TRUE 70) TRUE 71) TRUE 72) FALSE 73) FALSE 74) FALSE 75) TRUE 76) TRUE 77) TRUE 78) TRUE 79) TRUE 80) FALSE 81) FALSE 82) TRUE 83) FALSE 84) TRUE 85) FALSE 86) TRUE 87) FALSE 88) TRUE 89) TRUE 90) TRUE 91) FALSE 92) FALSE 93) FALSE 94) TRUE 95) TRUE 96) FALSE 97) FALSE 98) TRUE 99) FALSE 100) FALSE 15

Answer Key Testname: C11

101) FALSE 102) FALSE 103) • Vendor in driver's seat—Each outsource vendor has methods and procedures for its service. The hiring organization and its employees will have to conform to those procedures.

• Technology direction—Unless the contract requires otherwise, the outsource vendor chooses the technology that it wants to implement. If the vendor, for some reason, is slow to pick up on a significant new technology, then the hiring organization will be slow to attain benefits from that technology. An organization can find itself at a competitive disadvantage because it cannot offer the same information systems (IS) services as its competitors.

• Potential loss of intellectual capital—The company may need to reveal proprietary trade secrets, methods, or procedures to the outsource vendor's employees.

• Product fixes, enhancements in wrong priority—Quality vendors track software failures and problems and fix them according to a set of priorities. When a company outsources a system, it no longer has control over prioritizing those fixes. Such control belongs to the vendor. A fix that might be critical to the organization might be of low priority to the outsource vendor.

• Vendor management, direction, or identity changes—The outsource vendor may change management, adopt a different strategic direction, or be acquired. When any of those changes occur, priorities may change, and an outsource vendor that was a good choice at one time might be a bad fit after it changes direction. It can be difficult and expensive to change an outsource vendor when this occurs.

• Chief information officer (CIO) may become superfluous—When users need a critical service that is outsourced, the CIO must turn to the vendor for a response. In time, users learn that it is quicker to deal directly with the outsource vendor, and soon the CIO is out of the communication loop. At that point, the vendor has essentially replaced the CIO, who has become a figurehead.

104) Outsourcing caps financial risk and leads to greater budgetary stability. It can reduce risk by ensuring a certain level of quality, or avoiding the risk of having substandard quality. Hiring an outside cloud vendor reduces the risk of picking the wrong hardware or the wrong software, or implementing tax law changes incorrectly. Outsourcing gathers all of these risks into the risk of choosing the right vendor. Once the company has chosen the vendor, further risk management is up to that vendor.

105) Outsourcing is the process of hiring another organization to perform a service. Its management advantages are: • Obtain expertise—Outsourcing can be an easy way to gain expertise. Developing expertise is often expensive, and may not be in the company's strategic direction. The organization might choose to hire a specialist company to perform this service.

• Avoid management problems—Outsourcing helps in avoiding the management problems that arise due to hiring and allotting tasks that require specific skills.

• Free management time—Some companies choose to outsource to save management time and attention. Outsourcing saves both direct and indirect management time.

106) Outsourcing can appear too good to be true. Some of the benefits of outsourcing that are outweighed by its long-term costs are: • High unit cost, forever—Although a fixed cost does indeed cap exposure, it also removes the benefits of economies of scale.

• Paying for someone else's mismanagement—An organization can find itself paying for another organization's mismanagement or may suffer the consequences of poor management, such as lost data.

• In time, outsource vendor is de facto sole source—The outsource vendor may change its pricing strategy over time.

Initially, an organization obtains a competitive bid from several outsource vendors. However, as the winning vendor learns more about the business and as relationships develop between the organization's employees and those of the vendor, it becomes difficult for other firms to compete for subsequent contracts. The vendor becomes the de facto sole source and, with little competitive pressure, might increase its prices.

16

Answer Key Testname: C11

107) The major functions of the IS department are as follows: • Plan the use of IS to accomplish organizational goals and strategy.

• Develop, operate, and maintain the organization's computing infrastructure.

• Develop, operate, and maintain applications.

• Protect information assets.

• Manage outsourcing relationships.

108) Many firms headquartered in the United States have chosen to outsource overseas. Microsoft and Dell, for example, have outsourced major portions of their customer support activities to companies outside the United States. India is a popular source because it has a large, well-educated, English-speaking population that will work for 20 to 30 percent of the labor cost in the United States. China and other countries are used as well. International outsourcing is particularly advantageous for customer support and other functions that must be operational 24/7. During the evening hours in the United States, customer service reps in India, where it is daytime, can handle the calls. When night falls in India, customer service reps in Ireland or Scotland can handle the early morning calls from the east coast of the United States. In this way, companies can provide 24/7 service without requiring employees to work night shifts.

109) A steering committee is a group of senior managers from the major business functions that works with the CIO to set the IS priorities and decide among major IS projects and alternatives. The steering committee serves an important communication function between IS and the users. In the steering committee, information systems personnel can discuss potential IS initiatives and directions with the user community. At the same time, the steering committee provides a forum for users to express their needs, frustrations, and other issues they have with the IS department.

Typically, the IS department sets up the steering committee's schedule and agenda and conducts the meetings. The chief executive officer (CEO) and other members of the executive staff determine the membership of the steering committee.

110) Users of information systems have a right to: • Computer hardware and programs that allow them to perform their jobs proficiently • Reliable network and Internet services • A secure computing environment • Protection from viruses, worms, and other threats • Contribute to requirements for new system features and functions • Reliable systems development and maintenance • Prompt attention to problems, concerns, and complaints • Properly prioritized problem fixes and resolutions • Effective training 111) Organizations have found hundreds of different ways to outsource information systems and portions of information systems.

Some organizations outsource the acquisition and operation of computer hardware. Electronic Data Systems (EDS) has been successful for more than 30 years as an outsource vendor of hardware infrastructure.

Acquiring licensed software is another form of outsourcing. Rather than develop the software in-house, an organization licenses it from another vendor. Such licensing allows the software vendor to amortize the cost of software maintenance over all of the users, thus reducing that cost for all users.

Software as a service (SaaS) is another outsourcing alternative, in which hardware and both operating system and application software are leased. Salesforce.com is a typical example of a company that offers SaaS. Another outsourcing alternative is to outsource an entire system. PeopleSoft (now owned by Oracle) attained prominence by providing the entire payroll function as an outsourced service. In such a solution, the vendor provides hardware, software, data, and some procedures. The company need provide only employee and work information; the payroll outsource vendor does the rest.

Finally, some organizations choose to outsource an entire business function. For years, many companies have outsourced to travel agencies the function of arranging for employee travel.

17

Answer Key Testname: C11

112) The risks associated with ending an outsourcing agreement are as follows: • Critical knowledge in minds of vendors, not employees—The outsource vendor's employees have gained significant knowledge of the company. They know the server requirements in customer support, they know the patterns of usage, and they know the best procedures for downloading operational data into the data warehouse. Consequently, lack of knowledge will make it difficult to bring the outsourced service back in-house.

• Expensive and risky to change vendors—Because the vendor has become so tightly integrated into the business, parting company can be exceedingly risky. Because of such risk, the company must invest considerable work, duplication of effort, management time, and expense to change to another vendor.

113) The title of the principal manager of the IS department varies from organization to organization. A common title is chief information officer, or CIO. The CIO, like other senior executives, reports to the chief executive officer (CEO), though sometimes these executives report to the chief operating officer (COO), who, in turn, reports to the CEO. This is typically the case in organizations such as manufacturers that operate significant nonaccounting information systems.

In some companies, the CIO reports to the chief financial officer (CFO). This reporting arrangement might make sense if the primary information systems support only accounting and finance activities.

114) With outsourcing, organizations can obtain part-time services. Another benefit of outsourcing is to gain economies of scale. If a number of organizations outsource to the same vendor, then that vendor can make all of the adjustments once, and the cost of the change can be amortized over all of them (thus lowering the cost that the vendor must charge).

115) Users of information systems have a responsibility to: • Learn basic computer skills • Learn standard techniques and procedures for the applications they use • Follow security and backup procedures • Protect their password(s) • Use computers and mobile devices according to the employer's computer-use policy • Make no unauthorized hardware modifications • Install only authorized programs • Apply software patches and fixes when directed to do so • When asked, devote the time required to respond carefully and completely to requests for requirements for new system features and functions • Avoid reporting trivial problems 116) • The IS departments include a technology office that investigates new information systems technologies and determines how the organization can benefit from them. The chief technology officer, or CTO, often heads the technology group.

• The operations group manages the computing infrastructure, including individual computers, in-house server farms, networks, and communications media. This group includes system and network administrators. An important function for this group is to monitor the user experience and respond to user problems.

• The development group manages the process of creating new information systems as well as maintaining existing information systems.

• The outsourcing relations group exists in organizations that have negotiated outsourcing agreements with other companies to provide equipment, applications, or other services.

117) The chief technology officer, or CTO, often heads the technology group in an IS department. The CTO evaluates new technologies, new ideas, and new capabilities and identifies those that are most relevant to the organization. The CTO's job requires deep knowledge of information technology and the ability to envision and innovate applications for the organization.

18

Answer Key Testname: C11

118) The major IS planning functions are: • Align information systems with organizational strategy—The purpose of an information system is to help the organization accomplish its goals and objectives. In order to do so, all information systems must be aligned with the organization's competitive strategy. Maintaining alignment between IS direction and organizational strategy is a continuing process. As strategies change, as the organization merges with other organizations, as divisions are sold, IS must evolve along with the organization.

• Communicate IS/IT issues to executive group—The chief information officer (CIO) is the representative for IS and information technology (IT) issues within the executive staff. The CIO provides the IS perspective during discussions of problem solutions, proposals, and new initiatives.

• Develop IS priorities and enforce them within the IS department—The CIO must ensure that priorities consistent with the overall organizational strategy are developed, and then communicated to the IS department. At the same time, the CIO must also ensure that the department evaluates proposals and projects for using new technology in light of those communicated priorities.

• Sponsor the steering committee—A steering committee is a group of senior managers from the major business functions that works with the CIO to set the IS priorities and decide among major IS projects and alternatives.

19

Exam Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Which of the following statements is TRUE of the swim-lane layout used for modeling business processes?

A) It complicates the process diagrams.

B) All activities for a given role are repeated in all the swim-lanes.

C) It models knowledge flows D) Each role in the business process has to share the swim-lane with other roles.

E) It draws attention to the interactions among components of the diagram.

1)

2) ________ play a key role in moving development projects through the SDLC or scrum development process.

A) Programmers B) Business analysts C) Database designers D) Systems analysts E) Technical managers

2)

3) In business process management (BPM), once the as-is model is created, the very next step that a team must take is to ________.

A) look for improvement opportunities B) assess the results of the changes C) implement changes in the organization D) test implemented changes E) obtain feedback about implementation

3)

4) According to the scrum process, once the tasks are known for a given set of requirements, the next step is to assign each task a difficulty score, called ________.

A) marks B) scrums C) points D) grades E) tallies

4)

5) Control Objectives for Information and related Technology (COBIT) is often used in the ________ stage of the business process management (BPM) cycle.

A) process modeling B) implementation C) assessment D) maintenance E) component creation

5)

6) In systems development, documents, designs, prototypes, data models, database designs, and working data entry screens are examples of ________.

A) components B) inputs C) reports D) resources E) deliverables

6)

1

7) The ________ is a sequence of activities that determine the earliest date by which a project can be completed.

A) scatter route B) b-tree path C) critical path D) exit path E) cycle route

7)

8) Melissa is in charge of creating a Business Process Modeling Notation (BPMN) diagram for the procurement department. The diagram will represent the separate paths to be followed for an old supplier and a new supplier. Which of the following shapes should Melissa use to represent the question "old supplier?" which can be answered with a yes or no as applicable?

A) rectangles B) squares C) ovals D) diamonds E) circles

8)

9) XYZ Corp. has to change their online ordering system to compete with ABC Corp. They are changing their business process with a ________.

A) change in business fundamentals B) change in product line C) change in technology D) request to improve process quality E) company reorganization

9)

10) In a business process, a(n) ________ is defined as a collection of activities.

A) repository B) activity C) role D) control flow E) data flow

10)

11) Which of the following is TRUE of scrum?

A) It does not adapt to change easily.

B) It produces error free systems.

C) It is generic enough to be used for the development of business processes, information systems, and applications.

D) Its work periods are usually three months or longer.

E) It was developed to overcome the problems that occur when using the Business Process Modeling Notation (BPMN).

11)

12) In a business process, a(n) ________ shows the movement of data among activities and repositories.

A) data flow B) role C) control flow D) activity E) repository

12)

2

13) ACES is a quality auditing firm. It has dedicated a team of managers, business analysts, and systems analysts to develop an information system that receives data and produces quarterly reports that grade companies on their quality rating. The team is using the five-phase systems development life cycle (SDLC) to develop this information system. During which of the following phases will the team identify what kind of reports need to be produced and how frequently?

A) component design B) system implementation C) system definition D) requirements analysis E) system maintenance

13)

14) The project plan which results from defining the system is the input to the ________ phase of the SDLC. A) requirement collection B) systems implementation C) system maintenance D) system design E) requirements analysis

14)

15) During the system implementation phase of the systems development life cycle (SDLC), once a system has passed testing, the organization installs the new system. Which of the following terms is used to refer to this activity?

A) system overlay B) system development C) system configuration D) system conversion E) system control

15)

16) In a business process, ________ are defined as collections of related tasks that receive inputs and produce outputs.

A) presentations B) databases C) data stores D) activities E) resources

16)

17) A(n) ________is a combination of hardware, software, and data components that accomplishes a set of requirements.

A) activity B) application C) information system D) procedure E) process

17)

18) A ________ shows the tasks, dates, and dependencies for the tasks of a project.

A) control chart B) fusion chart C) hegemon chart D) Gantt chart E) Pareto chart

18)

3

19) In a Business Process Modeling Notation (BPMN) diagram, ________ depict the flow or sequence of activities in a process.

A) diamonds B) solid arrows C) dotted arrows D) ovals E) circles

19)

20) ________ created a standard of terms and graphical notations for document businesses processes.

A) Business Process Modeling Notation (BPMN) B) Object Management Group (OMG) C) International Business Modeling Notation (IBMN) D) Component Object Model (COM) E) Business Process Execution Language (BPEL)

20)

21) In business process management (BPM), an as-is model ________.

A) predicts the likely future state of a business process B) represents the desired state of a business process C) documents the existing business process D) contrasts the former and current states of a business process E) represents the ideal state of a business process

21)

22) In the context of system implementation phase of the systems development life cycle (SDLC), a(n) ________ installation is the riskiest because the old system is shut down and the new system is introduced.

A) immersion B) parallel C) phased D) plunge E) pilot

22)

23) Which of the following are the steps in the business process management (BPM) cycle?

A) create components; implement processes; model processes; assess results B) model processes; implement processes; assess results; create components C) create components; model processes; implement processes; assess results D) implement processes; create components; model processes; assess results E) model processes; create components; implement processes; assess results

23)

24) The final work breakdown structure (WBS) plan shows planned tasks, dependencies, durations, and resource assignments. It is denoted as ________ WBS. A) benchmark B) standard C) baseline D) test E) path

24)

4

25) A ________ is a network of activities, repositories, roles, resources, and flows that interact to accomplish a business function.

A) business stature B) business process C) business diagram D) business policy E) business analysis

25)

26) Once the project's goals and scope have been defined, the next step in the system definition phase of the systems development life cycle (SDLC) is to ________.

A) conduct user interviews B) plan the project C) form a project team D) assess feasibility E) determine system requirements

26)

27) Dentoin Pharmaceuticals requires an information system to support its new assembly line. The management has assigned a team of ten members to plan this project. Which of the following will be the first major task for this team?

A) designing the system components B) defining the system goals and scope C) planning the project D) conduct user interviews E) assessing the project's feasibility

27)

28) A ________ involves balancing three critical factors: requirements, cost, and time.

A) critical path B) trade-off C) work breakdown structure (WBS) D) test plan E) diagnostic plan

28)

29) Ryan is creating a Business Process Modeling Notation (BPMN) diagram for the manufacturing process of his organization. Which of the following should he use to represent the check inventory activity?

A) a dotted arrow B) a diamond C) a rectangle D) a solid arrow E) a pentagon

29)

30) In a Business Process Modeling Notation (BPMN) diagram, dotted arrows depict the flow of ________ in the process.

A) tasks and activities B) control C) messages and data D) applications E) resources

30)

5

31) Rapid application development, the unified process, extreme programming, and scrum have come to be known as ________.

A) systems development life cycle (SDLC) B) joint application development C) dynamic systems development model D) coalesced development E) agile development

31)

32) Which of the following can be represented using the Business Process Modeling Notation (BPMN)?

A) scatter plots B) Gantt charts C) candle-stick charts D) as-is models E) PERT charts showing the critical path

32)

33) In a business process, resources are ________.

A) data stores within the system B) people or computer applications that are assigned to roles C) collections of procedures and activities D) collections of related tasks that receive inputs and produce outputs E) the total number of points of work that can be accomplished in each scrum period

33)

34) Which of the following is TRUE of paired programming?

A) Two team members write the same program by coordinating from different locations.

B) Two processors are required to run one program.

C) Two programs are run simultaneously on one device.

D) Two programmers share the same computer to write a computer program together.

E) Two multihomed systems process data simultaneously.

34)

35) In the system implementation phase of the systems development life cycle (SDLC), with ________ installation, the organization implements the entire new system/business processes on a limited portion of the business.

A) plunge B) pilot C) parallel D) phased E) immersion

35)

36) ________ set the stage for the requirements for any information systems and applications that need to be created or adapted.

A) Business reports B) Business process models C) Business requirements D) Business policies E) Business repositories

36)

6

37) The first phase of the systems development life cycle (SDLC) is ________.

A) defining the system B) implementing the system C) determining the requirements D) maintaining the system E) design system components

37)

38) The third phase of the systems development life cycle (SDLC) is ________.

A) defining the system B) implementing the system C) determining the requirements D) maintaining the system E) design system components

38)

39) The second phase of the systems development life cycle (SDLC) is ________.

A) defining the system B) implementing the system C) determining the requirements D) maintaining the system E) design system components

39)

40) All of the following are keys to success when managing a SDLC project except ________.

A) create a prototype B) create a work breakdown structure C) estimate time and costs D) manage development challenges E) adjust the plan via trade-offs

40)

41) The systems development life cycle (SDLC) process follows a linear sequence from requirements to design to implementation. Therefore, the systems development life cycle (SDLC) process is also known as the ________.

A) rainbow method B) swim-lane method C) waterfall method D) scrum process E) agile development method

41)

42) The ________ phase of the systems development life cycle (SDLC) involves determining hardware and program specifications, designing the database and procedures, and creating job definitions.

A) system implementation B) system maintenance C) system definition D) component design E) requirements analysis

42)

43) The traditional process for developing information systems is ________.

A) product life cycle B) the software defect life cycle C) the systems development life cycle D) the rapid prototyping cycle E) the software testing life cycle

43)

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44) In the system implementation phase of the systems development life cycle (SDLC), with the ________ installation, the organization installs the next piece of the system only after the previous piece works.

A) pilot B) plunge C) immersion D) phased E) parallel

44)

45) A(n) ________ is a formal description of a system's response to use and misuse scenarios.

A) defect report B) activity log C) test plan D) work breakdown structure E) test scenario

45)

46) ________ depict(s) the flow of messages and data flows.

A) Solid arrows B) An activity C) Data D) Dotted arrows E) A diamond

46)

47) The total number of points of work a team can accomplish in each scrum period is called ________.

A) intensity B) speed C) score D) velocity E) degree

47)

48) In Business Process Modeling Notation (BPMN) diagrams, a square with a plus sign means that ________.

A) it is the end of the process B) a question can be answered with no C) a question can be answered with yes D) it is the beginning of the process E) an activity is considered to be a subprocess of a process

48)

49) In a business process, a(n) ________ directs the order of activities.

A) activity B) data flow C) repository D) sequence

49)

E) role

50) Which of the following are the dimensions of feasibility?

A) planning, process, technical, and schedule feasibility B) cost, schedule, technical, and organizational feasibility C) operational, strategic, technical, and tactical feasibility D) technical, process, procedural, and operational feasibility E) schedule, process, technical, and competitive feasibility

50)

51) The work done during the ________ phase is either to fix the system so that it works correctly or to adapt it to changes in requirements.

A) systems definition B) component design C) maintenance D) implementation E) requirements analysis

51)

8

52) Which of the following is one of the keys to successful systems development life cycle (SDLC) projects?

A) scatter plot B) control chart C) critical path template D) work breakdown structure E) internal process auditing

52)

53) ________ are information system (IS) professionals who understand both business and information technology.

A) Network administrators B) Systems administrators C) Development analysts D) Systems analysts E) Database designers

53)

54) The term ________ refers to a set of management policies, practices, and tools that developers use to maintain control over the systems development life cycle (SDLC) project's resources.

A) seven-phase B) swim-lane layout C) trade-off D) transmission control protocol E) configuration control

54)

55) If a defined project is determined to be feasible in the systems development life cycle (SDLC), the next step is to ________.

A) maintain the system B) form the project team C) create and test components D) assess process results E) conduct user interviews

55)

56) All of the following are principles of scrum development except ________.

A) welcoming a change in requirements B) testing the project once during development C) frequently delivering a working version of the product D) designing as you go E) working closely with the customers

56)

57) During the requirements definition stage of developing an information system, the project team will consist mostly of ________.

A) test engineers and business users B) business and systems analysts C) finance and account managers D) systems engineers E) database designers and administrators

57)

9

58) What is a reason the waterfall method is falling out of favor?

A) Because every time a phase is completed, the project goes back to the previous phase.

B) All organizations want to prototype.

C) SDLC assumes requirements do not change.

D) It is too safe for newer development.

E) Organizations cannot see what they have until the very end.

58)

59) In a business process, a role refers to ________.

A) the movement of data B) a collection of data C) a collection of activities D) a physical repository E) a collection of systems

59)

60) The final phase of the systems development life cycle (SDLC) is ________.

A) define the system B) maintaining the system C) implementing the system D) determining the requirements E) designing system components

60)

61) Tasks in the ________ phase of the systems development life cycle (SDLC) are to build and test system components, and to convert users to the new system.

A) requirements analysis B) system definition C) system implementation D) system maintenance E) component design

61)

62) In a business process, a(n) ________ is defined as a collection of something.

A) presentation B) application C) activity D) resource E) repository

62)

63) Organizational feasibility concerns ________.

A) whether the organization has the technical infrastructure to implement the new system B) whether the organization has adequate financial funding C) the organization's budget and schedule requirements D) whether the new system fits within the organization's customs or legal requirements E) the competitor's business process model

63)

64) In the system implementation phase of the systems development life cycle (SDLC), with ________ installation, the new system runs alongside the old one until it has been tested and is fully operational.

A) parallel B) plunge C) phased D) pilot E) immersion

64)

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65) Crispies is a breakfast cereal manufacturing company. It is shifting its manufacturing process from batch processing to assembly line production. The information system for the assembly line is ready to be installed. Crispies decides to completely shut down the batch processing system and install the new assembly line. This style of conversion is known as ________.

A) phased installation B) plunge installation C) parallel installation D) preemptive installation E) pilot installation

65)

66) ________ is a standard set of terms and graphical notations for documenting business processes.

A) Business Process Execution Language (BPEL) B) Business Process Modeling Notation (BPMN) C) International Organization for Standardization (ISO) 9000 D) International Business Modeling Notation (IBMN) E) Component Object Model (COM)

66)

67) The situation that occurs when the addition of resources creates inefficiencies is known as ________.

A) break-even B) diseconomies of scale C) marginal returns D) inverse efficacy E) marginal utility

67)

68) The first step in the system definition phase of the systems development life cycle (SDLC) is to ________.

A) define the goals and scope B) conduct a feasibility study C) plan the project D) form the project team E) conduct user interviews

68)

69) Tranware Inc., an apparel manufacturer, receives cotton and other raw materials from its suppliers at the beginning of every quarter. With reference to this information, Tranware receives its ________ at the beginning of every quarter.

A) data repository B) resources C) deliverables D) receivables E) physical repository

69)

70) All of these are steps in the system definition except ________.

A) define system goals and scope B) plan the project C) requirements analysis D) assess feasibility E) form the project team

70)

11

71) According to Brooks' Law, adding more people to a late project will ________.

A) speed up the project B) create diseconomies of scale C) reduce managerial overhead D) reduce the need for coordination E) guarantee efficiencies

71)

72) Which of the following statements is TRUE about the relationship between business processes and information systems?

A) Developing information systems before business processes ensures that all activities are considered in the development process.

B) The relationship between business processes and information systems is one-to-one.

C) A business process need not relate to any information system, but an information system relates to at least one business process.

D) Developing information systems before business processes ensures that all systems are inherently secure.

E) Information systems incorporate all business process activities and hence, should be developed before business processes.

72)

73) Each workday in the scrum process begins with a ________.

A) stand-up B) an inspirational message C) coalesced development D) a new team E) updates by the Scrum master

73)

74) Which of the following statements is TRUE of information systems?

A) Information systems include all business process activities.

B) Every business process should include at least one information system.

C) Every information system has at least one application.

D) Information systems should be bought entirely off-the-shelf.

E) Information systems should consist of only one application.

74)

75) A ________ is a person who is well versed in an organization's strategy and focuses on ensuring that business processes and information systems meet the organization's competitive strategies.

A) business developer B) business supervisor C) business administrator D) business analyst E) business application programmer

75)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

76) Effective BPM enables organizations to attain continuous process improvement.

76)

77) The actors or participants in a business process are the users of information systems.

77)

78) A work breakdown structure (WBS) shows tasks, dates, and dependencies.

78)

79) An as-is model documents the desired outcome of a business process.

79)

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80) In a business process, only a single resource is assigned to a role.

80)

81) Deep neural networks are reshaping the way enterprise systems are developed.

81)

82) Business process management only applies to commercial organizations.

82)

83) Information systems and business processes are synonymous terms.

83)

84) Once the as-is model has been documented, that model can then be analyzed for problems or for improvement opportunities.

84)

85) The relationship of business processes and information systems is many-to-many.

85)

86) The critical path is the sequence of activities that determine the earliest date by which the project can be completed.

86)

87) In a business process, roles are collections of activities.

87)

88) A project team that develops an information system (IS) will comprise business and systems analysts during the requirements definition phase.

88)

89) SDLC rose to prominence when the U.S. Department of Defense required it on government contracts.

89)

90) An inventory is an example of a physical repository.

90)

91) Systems analysts facilitate the work of programmers, testers, and users.

91)

92) Dimensions of process quality are effectiveness and efficiency.

92)

93) Not all information systems have applications or software components.

93)

94) Business processes, information systems, and applications have the same characteristics and components.

94)

95) The systems development life cycle is the traditional process used to develop information systems and applications.

95)

96) Business process management applies only to commercial, profit-making organizations.

96)

97) A work breakdown structure (WBS) is a hierarchy of the tasks required to complete a project.

97)

98) The business process management cycle begins by creating a model of the existing business processes.

98)

99) The process of assessing a project's feasibility occurs during the component design phase of the systems development life cycle (SDLC).

99)

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100) Unlike business analysts, systems analysts work more with managers and executives.

100)

101) The important point in systems analysis is for users to stay out of the process until the end.

101)

102) Implementing the new or changed process is the third activity in business process management.

102)

103) If a scrum project terminates because of budget or time limitations, the customer will not receive any result for the time and money expended.

103)

104) The activities in a business process often involve information systems.

104)

105) User involvement is critical throughout the system development process.

105)

106) Using the scrum method overcomes the issues of the traditional SDLC and guarantees that a project will produce a high-quality product.

106)

107) Brooks' Law states that adding more people to a late project reduces the need for coordination.

107)

108) In the swim-lane layout for modeling business processes, each role is given its own swim lane.

108)

109) In Business Process Modeling Notation (BPMN), solid arrows depict the flow of messages and data.

109)

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

110) Explain why process management is necessary for an organization.

111) What are the types of arrows used in the swim-lane layout of Business Process Modeling Notation (BPMN)?

112) Discuss some of the key aspects to developing successful process and systems development projects.

113) Define technical feasibility and organizational feasibility.

114) What are the tools used when planning information systems (IS) projects?

115) What events led to the development of the Systems Development Life Cycle (SDLC)?

116) Define business process, roles, resources, and data flows.

117) Define cost feasibility and schedule feasibility.

118) List and explain four critical factors for development project management.

119) How are tasks scheduled in scrum methodology?

120) What are the phases of the systems development life cycle (SDLC)?

121) What are the principles of agile development?

14

122) Name the stages of the business process management cycle and summarize the activities in each.

123) Describe the composition of a development team for an information system (IS).

15

Answer Key Testname: C12

1) E 2) D 3) A 4) C 5) C 6) E 7) C 8) D 9) C 10) C 11) C 12) A 13) D 14) E 15) D 16) D 17) B 18) D 19) B 20) B 21) C 22) D 23) E 24) C 25) B 26) D 27) B 28) B 29) C 30) C 31) E 32) D 33) B 34) D 35) B 36) B 37) A 38) E 39) C 40) A 41) C 42) D 43) C 44) D 45) C 46) D 47) D 48) E 49) D 50) B 16

Answer Key Testname: C12

51) C 52) D 53) D 54) E 55) B 56) B 57) B 58) C 59) C 60) B 61) C 62) E 63) D 64) A 65) B 66) B 67) B 68) A 69) E 70) C 71) B 72) C 73) A 74) C 75) D 76) TRUE 77) TRUE 78) FALSE 79) FALSE 80) FALSE 81) TRUE 82) FALSE 83) FALSE 84) TRUE 85) TRUE 86) TRUE 87) TRUE 88) TRUE 89) TRUE 90) TRUE 91) TRUE 92) TRUE 93) FALSE 94) FALSE 95) TRUE 96) FALSE 97) TRUE 98) TRUE 99) FALSE 100) FALSE 17

Answer Key Testname: C12

101) FALSE 102) TRUE 103) FALSE 104) TRUE 105) TRUE 106) FALSE 107) FALSE 108) TRUE 109) FALSE 110) Processes are dynamic and often need to be changed. This need can arise because the quality of a process requires improvement, because of a change in technology, or because of a change in some business fundamentals. Process management is necessary for the following reasons: • Improve process quality—The need to monitor process quality and adjust process design, as appropriate, is one reason that processes need to be managed.

• Change in technology—When new technology changes any of a process's activities in a significant way, the entire process needs to be evaluated. That evaluation is another reason for managing processes.

• Change in business fundamentals—A substantial change in any of the following factors might result in the need to modify business processes: — Market (e.g., new customer category, change in customer characteristics) — Product lines — Supply chain — Company policy — Company organization (e.g., merger, acquisition) — Internationalization — Business environment 111) Dotted arrows and solid arrows are two kinds of arrows used in the swim-lane layout. Dotted arrows depict the flow of messages and data flows. Solid arrows depict the flow or sequence of the activities in the process. Some sequence flows have data associated with them as well.

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Answer Key Testname: C12

112) The key aspects to developing successful systems development life cycle (SDLC) include: • Create a work breakdown structure—Successful project managers break large projects into smaller tasks until each task is small enough to estimate and to manage. Every task should culminate in one or more results called deliverables.

Tasks are interrelated, and to prevent them from becoming confusing, project teams create a work breakdown structure (WBS), which is a hierarchy of the tasks required to complete a project.

• Estimate time and costs—It is exceedingly difficult to determine duration and labor requirements for many development tasks. Organizations take a variety of approaches to this challenge. One is to avoid scheduling problems altogether and never develop systems and software in-house. Instead, they license packages, such as ERP systems, that include both business processes and information systems components. If no suitable package exists, companies can admit the impossibility of scheduling a date for the completion of the entire system and take the best result they can get. The third approach is to attempt to schedule the development project in spite of all the difficulties.

• Create a project plan—A project plan is a list of WBS tasks, arranged to account for task dependencies, with durations and resources applied. Some tasks cannot be started or finished until other tasks are completed. Given dependencies, estimates for task duration and resource requirements are then applied to the WBS to form a project plan. The critical path is the sequence of activities that determine the earliest date by which the project can be completed. The earliest date is the date determined by considering the longest path through the network of activities.

Paying attention to task dependencies, the planner will compress the tasks as much as possible. Those tasks that cannot be further compressed lie on the critical path.

• Adjust the plan via trade-offs—The project plan for the entire project results in a finish date and a total cost.

Schedules and costs can be responsibly reduced by considering trade-offs. A trade-off is a balancing of three critical factors: requirements, cost, and time.

• Manage development challenges—Nothing ever goes according to plan, and the larger the project and the longer the development interval, the more things will violate the plan. Four critical factors need to be considered: — Coordination — Diseconomies of scale — Configuration control — Unexpected events 113) Technical feasibility refers to whether existing information technology is likely to be able to meet the needs of the new system. Organizational feasibility concerns whether the new system fits within the organization's customs, culture, charter, or legal requirements.

114) The various tools used to meet the complexities of planning IS projects are work breakdown structures, Gantt charts, and critical paths. Tasks are interrelated, and to prevent them from becoming confusing, project teams create a work breakdown structure (WBS), which is a hierarchy of the tasks required to complete a project. The WBS for a large project is huge; it might entail hundreds or even thousands of tasks. Once the project is decomposed into small tasks, the next step is to define task dependencies and to estimate task durations. Task dependencies are normally input to planning software such as Microsoft Project. One of the tools used is a Gantt chart, which shows tasks, dates, and dependencies. Another tool used is a critical path, which is the sequence of activities that determines the earliest date by which the project can be completed. Critical path analysis is the process by which project managers compress the schedule by moving resources, typically people, from noncritical path tasks onto critical path tasks.

115) The systems development life cycle (SDLC) is the traditional process used to develop information systems and applications. Many early projects met with disaster, and companies and systems developers sifted through the ashes of those disasters to determine what went wrong. By the 1970s, most seasoned project managers agreed on the basic tasks that need to be performed to successfully build and maintain information systems. These basic tasks are combined into phases of systems development. SDLC rose to prominence when the U.S. Department of Defense required it on government contracts.

116) A business process is a network of activities, repositories, roles, resources, and flows that interact to accomplish a business function. Roles are collections of activities. Resources are people or computer applications that are assigned to roles. A data flow shows the movement of data among activities and repositories.

19

Answer Key Testname: C12

117) Cost feasibility is an assessment of whether the anticipated benefits of the system are likely to justify the estimated development and operational costs. In some cases, it also means whether the project can realistically be done within the budget provided. Schedule feasibility is an estimate of the time it will take to build the system.

118) Nothing ever goes according to plan; the larger the project and the longer the development interval, the more things will violate the plan. Four critical factors need to be considered: 1. Coordination 2. Diseconomies of scale 3. Configuration control 4. Unexpected events Coordination—Development projects, especially large-scale projects, are usually organized into a variety of development groups that work independently. Coordinating the work of these independent groups can be difficult, particularly if the groups reside in different geographic locations or different countries. An accurate and complete WBS facilitates coordination, but no project ever proceeds exactly in accordance with the WBS. Delays occur, and unknown or unexpected dependencies develop among tasks.

Diseconomies of scale—The number of possible interactions among team members rises exponentially with the number of team members. Ultimately, no matter how well managed a project is, diseconomies of scale will set in.

Configuration control—As the project proceeds, controlling the configuration of the work product becomes difficult.

The development team produces an initial statement of requirements. Meetings with users produce an adjusted set of requirements. An event could occur necessitating a change to requirements. Similar problems occur with designs, program code, database data, and other system components. The term configuration control refers to a set of management policies, practices, and tools that developers use to maintain control over the project's resources. Such resources include documents, schedules, designs, program code, test suites, and any other shared resource needed to complete the project.

Unexpected events—The last major challenge to large-scale project management is unexpected events. The larger and longer the project, the greater the chance of disruption due to an unanticipated event.

119) Scrum is particularly innovative because of the way tasks are scheduled in it. Scrum methodology recognizes that developers are terrible, even wretched, at determining how long a task will take. However, developers are quite good at determining how long something will take in comparison to something else. So, while a developer may be poor at estimating the time required to do, say, some Task 2, he or she will likely be accurate when saying that Task 2 will take twice as long as Task 1, or some other ratio.

So, according to the scrum process, once the tasks are known for a given set of requirements, the next step is to assign each task a difficulty score, called points. The easiest task has a point score of 1. A task that will take five times longer is given a point score of 5, etc. Points are expressed in values from a sequence of integers known as the Fibonacci sequence: {1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and ?}. The question mark is used because any number larger than 144 is meaningless. Most likely 89 and 144 are meaningless as well. Tasks with such point scores need to be subdivided into multiple requirements. When all tasks have received points, the points are summed to a total for the requirement.

As teams work together, they will learn the total number of points of work they can accomplish each scrum period.

That term is called the team's velocity. The team uses its velocity to determine how many requirements it can commit to accomplishing in the next scrum period. The team uses its estimates of points per scrum period for scheduling.

120) The phases of the systems development life cycle are: • Define the system • Determine the requirements • Design system components • Implement the system • Maintain the system

20

Answer Key Testname: C12

121) First, scrum and the other agile techniques expect and even welcome change. Because systems are created to help organizations and people achieve their strategies, and the more the requirements change, the closer they come to facilitating strategies. The result is better and more satisfying for both the users and the development team. Second, scrum and other agile development processes are designed to frequently deliver a working version of some part of the product. Frequently means one to eight weeks, not longer. This frequency means that management is at risk only for whatever costs and time have been consumed in that period. And, at the end of the period, they will have some usable product piece that has at least some value to the business. The third principle is that the development team will work closely with the customer, until the project ends. Someone who knows the business requirements must be available to the development team and must be able and willing to clearly express, clarify, and elaborate on requirements. Also, customers need to be available to test the evolving work product and provide guidance on how well new features work. The fourth principle is a tough one for many developers to accept. Rather than design the complete, overall system at the beginning, only those portions of the design that are needed to complete the current work are done.

Sometimes this is called just-in-time design. Finally, agile development methodologies are generic. They can be applied to the creation of business processes, information systems, and applications.

122) Business process management (BPM) is a cyclical process for systematically creating, assessing, and altering business processes. This cycle begins by creating a model of the existing business process, called an as-is model. Then, business users who are involved in the process and business and systems analysts evaluate that model and make improvements. The next stage is to create system components. In this activity, the team designs changes to the business process at a depth sufficient for implementation. If the business process involves new information systems, or changes to existing information systems, then systems development projects are created and managed at this stage. In the third stage, new business processes or changes to existing business processes are implemented. Here, process actors are trained on the activities that they will perform and on the IS procedures that they will use. In the assessment stage, policy, procedures, and committees are created to continually assess business process effectiveness. The Information Systems Audit and Control Association has created a set of standard practices called COBIT (Control Objectives for Information and related Technology) that are often used in the assessment stage of the BPM cycle. When the assessment process indicates that a significant need for change has arisen, the BPM cycle is repeated and adjusted.

New process models are developed, and components are created, implemented, and assessed.

123) Typical personnel on a development team are a manager (or managers for larger projects), business analysts, systems analysts, programmers, software testers, and users.

A business analyst is someone who is well versed in Porter's models and organizational strategy, and who focuses, primarily, on ensuring that business processes and information systems meet the organization's competitive strategies.

The primary focus of a business analyst is business processes. Systems analysts are IS professionals who understand both business and information technology. They focus primarily on IS development, but are involved with business analysts on the management of business processes as well. Systems analysts play a key role in moving development projects through the systems development life cycle (SDLC) or scrum development process.

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