Digital Business Systems
Practice Questions
Course Introduction
Digital Business Systems explores the integration of technology within modern organizations to streamline operations, enhance decision-making, and enable digital transformation. This course covers foundational concepts of digital systems, including enterprise resource planning (ERP), customer relationship management (CRM), and business process management (BPM). Students will analyze how businesses leverage information systems for competitive advantage, improve efficiency, and support innovation. Through real-world case studies and practical exercises, learners will gain an understanding of system architectures, implementation challenges, and the strategic role of digital business solutions in today's global marketplace.
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Using MIS 7th Edition by David M. Kroenke
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13 Chapters
1464 Verified Questions
1464 Flashcards
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Chapter 1: The Importance of MIS
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Sample Questions
Q1) Which of the following types of skills is most likely to be outsourced to the lowest bidder?
A) ability to experiment
B) accounting skills
C) ability to collaborate
D) abstract reasoning skills
Answer: B
Q2) Which of the following is the least critical aspect of good information?
A) data accuracy
B) timeliness of data
C) additional data
D) relevance of data
Answer: C
Q3) A system is a group of components that interact without a specific purpose.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Business Processes, Information Systems, and Information
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Sample Questions
Q1) Need for collaboration increases as the decisions become more structured. A)True
B)False
Answer: False
Q2) The use of a conference call is an example of ________ communication. A) sequential B) synchronous C) indirect
D) unidirectional
Answer: B
Q3) What is the difference between synchronous and asynchronous communications? Provide examples for each.
Answer: Synchronous communications are collaborations where all the team members meet at the same time. Examples include face-to-face meetings, videoconferencing, conference calls, and multiparty chats.
Asynchronous communications occur when team members do not meet at the same time. Emails, discussion forums, and team surveys are examples of asynchronous communication.
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Chapter 3: Organizational Strategy, Information Systems, and Competitive Advantage
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119 Flashcards
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Sample Questions
Q1) Providing the lowest cost for a product or service across an industry can be referred to as focused cost-leadership.
A)True
B)False
Answer: False
Q2) Unlike the primary activities, the support activities in the generic value chain do not contribute to the production, sale, and service of the product.
A)True
B)False
Answer: False
Q3) The competitive strategy of locking in customers by making it difficult for them to move to another product is called establishing high switching costs.
A)True
B)False
Answer: True
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Chapter 4: Hardware and Software
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Sample Questions
Q1) A spreadsheet program is an example of ________.
A) vertical-market application software
B) an operating system
C) a firmware
D) horizontal-market application software
Q2) Machine code ________.
A) is understandable by humans
B) cannot be modified by humans
C) is written by humans
D) cannot be processed by computers
Q3) Which of the following terms refers to a collection of servers?
A) server database
B) server farm
C) firmware
D) shareware
Q4) Which of the following is the presentation format of an application?
A) cookie
B) process blueprints
C) botnet
D) user interface
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Chapter 5: Database Processing
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Sample Questions
Q1) Reports refer to the structured presentation of data using sorting, grouping, filtering, and other operations.
A)True
B)False
Q2) The lost-update problem can be resolved by implementing multi-user database processing.
A)True
B)False
Q3) A database is a self-describing collection of integrated records.
A)True
B)False
Q4) Which of the following is an international standard language for processing a database?
A) Cassandra
B) DB2
C) SQL
D) MS Access
Q5) SQL is an international standard language for processing a database.
A)True
B)False
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Chapter 6: The Cloud
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Sample Questions
Q1) Define SaaS, PaaS, and IaaS. Provide an example of each.
Q2) Which of the following characteristics is a disadvantage of cloud-based hosting?
A) It involves high dependency on vendor.
B) It involves significant requirement of capital.
C) It involves high annual maintenance costs.
D) It involves high ongoing support costs.
Q3) The IEEE 802.3 protocol standard is also known as ________.
A) Bluetooth
B) Ethernet
C) intranet
D) Internet
Q4) One of the advantages of cloud-based hosting, as long as it is with reputable organizations, is the best-of-breed security and disaster recovery.
A)True
B)False
Q5) Bluetooth is a common wired protocol designed to transmit data over long distances.
A)True
B)False
Q6) Explain the three factors that have made cloud computing advantageous today.
Page 8
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Chapter 7: Organizations and Information Systems
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Sample Questions
Q1) ________ are flexible, informal, and adaptive processes that normally involve strategic and less specific managerial decisions and activities.
A) Operational processes
B) Dynamic processes
C) Inherent processes
D) Structured processes
Q2) What is the fundamental problem of information silos? How can this problem be remedied?
Q3) ERP vendors train an organization's employees, called Super Users, to become in-house ERP trainers in training sessions called ________.
A) train the trainer
B) top-down training
C) on-the-job training
D) employ the employer
Q4) Process efficiency is a measure of the ratio of process outputs to inputs.
A)True
B)False
Q5) Define dynamic processes and list their characteristics.
Q6) What are the four challenges of implementing new enterprise systems?
Page 9
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Chapter 8: Social Media Information Systems
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Sample Questions
Q1) Which of the following statements is true of social CRM?
A) Customers likely to generate the most business get the most attention from the organization.
B) All the customer relationship processes in social CRM are structured and controlled.
C) Each customer crafts his or her own relationship with the company.
D) Though relationships emerge from joint activity, companies control the customers.
Q2) Content data is data and responses to data that are contributed by users and SM sponsors.
A)True
B)False
Q3) Web 2.0 enables advertisers to know the percentage of viewers who click an ad.
A)True
B)False
Q4) Unlike humans, organizations do not have social capital.
A)True
B)False
Q5) How should organizations respond to social networking problems? Which one of them is a dangerous approach and why?
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Chapter 9: Business Intelligence Systems
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Sample Questions
Q1) Control Objectives for Information and related Technology (COBIT) is often used in the ________ stage of the business process management (BPM) cycle.
A) component creation
B) implementation
C) assessment
D) process modeling
Q2) Which of the following are the steps in the business process management (BPM) cycle?
A) model processes; implement processes; assess results; create components
B) create components; model processes; implement processes; assess results
C) implement processes; create components; model processes; assess results
D) model processes; create components; implement processes; assess results
Q3) The project plan which results from defining the system is the input to ________, which is the second phase of the SDLC.
A) system design
B) system implementation
C) requirements analysis
D) system maintenance
Q4) What are the tools used when planning IS projects?
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Chapter 10: Information Systems Security
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Sample Questions
Q1) A decision tree analysis is a supervised data mining technique.
A)True
B)False
Q2) Which of the following statements is true about reporting applications?
A) Reporting applications deliver business intelligence to users as a result of an event or particular data condition.
B) Reporting applications consist of five standard components: hardware, software, data, procedures, and people.
C) Two important reporting applications are RFM analysis and OLAP.
D) Reporting applications produce business intelligence using highly sophisticated operations.
Q3) Push publishing requires the user to request BI results.
A)True
B)False
Q4) The software component of a BI system is called a BI application.
A)True
B)False
Q5) What is OLAP? What are some of its features?
Q6) What are MapReduce and Hadoop?
Page 12
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Chapter 11: Information Systems Management
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Sample Questions
Q1) Which of the following is a risk of outsourcing IS/IT functions?
A) It gives undue authority to the CIO in the executive team.
B) It provides the hiring organization with too many choices.
C) It involves the potential loss of intellectual capital.
D) It invariably results in diseconomies of scale.
Q2) If an organization does not develop programs in-house, then the development group of the IS department will include programmers, test engineers, and technical writers.
A)True
B)False
Q3) With outsourcing, there is seldom any concern about loss of intellectual capital.
A)True
B)False
Q4) It is the chief information officer's responsibility to establish and communicate IS priorities to the executive group, while the responsibility for enforcement rests with the chief executive officer.
A)True
B)False
Q5) How does outsourcing facilitate risk reduction?
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Chapter 12: Information Systems Development
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Sample Questions
Q1) Natural disasters present the largest risk for infrastructure loss.
A)True
B)False
Q2) Key escrow is a(n) ________.
A) protocol used to secure communication over the internet
B) safety procedure that allows a trusted party to have a copy of the encryption key
C) device that prevents unauthorized network access
D) encryption algorithm that uses both public and private keys
Q3) Which of the following usually happens in a malicious denial-of-service attack?
A) a hacker monitors and intercepts wireless traffic at will
B) a hacker floods a Web server with millions of bogus service requests
C) an intruder uses another site's IP address to masquerade as that other site
D) a phisher pretends to be a legitimate company and requests confidential data
Q4) ________ is similar to spyware but it watches user activity and produces pop-ups.
A) A cookie
B) Adware
C) A payload
D) Shareware
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Chapter 13: The International Dimension
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Sample Questions
Q1) List the issues that need to be addressed when localizing a computer program.
Q2) The business processes that support the competitive strategies of the multinational companies tend to be simpler and easier to implement, as they are isolated from one another.
A)True
B)False
Q3) When a firm is localizing a computer program, which of the following should it avoid?
A) translating the user interface
B) retaining forms and reports that have labels
C) adjusting the sorting order for different character sets
D) redrawing and translating diagrams
Q4) Technical and data safeguards change for international information systems.
A)True
B)False
Q5) International organizations have more IS and IT assets, and those assets are exposed to more risk and greater uncertainty.
A)True B)False
Q6) How can information reduce or eliminate the bullwhip effect?
Page 15
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