Enterprise Information Systems
Test Bank
Course Introduction
Enterprise Information Systems explores the integration, management, and impact of large-scale information systems within organizations. This course examines core concepts such as enterprise resource planning (ERP), supply chain management (SCM), customer relationship management (CRM), and business intelligence (BI), highlighting how these systems streamline business processes and support decision-making. Students will analyze real-world case studies to understand system implementation, data management, security concerns, and strategic alignment with organizational goals. Emphasis is placed on both technical and managerial perspectives, preparing students to assess, deploy, and manage enterprise systems in complex business environments.
Recommended Textbook
Management Information Systems Global 14th Edition by Kenneth C. Laudon
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Page 2
Chapter 1: Information Systems in Global Business Today
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Sample Questions
Q1) Creative work driven by new knowledge and information is an insignificant part of management responsibility.
A)True
B)False
Answer: False
Q2) ________ is data that has been shaped into a form that is meaningful to human beings.
Answer: Information
Q3) Apple Computer dominates the online legal music sales industry primarily because of a failure of recording label companies to
A) invest in technology.
B) assemble accurate data.
C) invest in complementary assets.
D) modernize their information value chain.
E) adopt a new business model.
Answer: E
Q4) ________ makes long-range strategic decisions about the firm's products and services.
Answer: Senior management
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Chapter 2: Global E-Business and Collaboration
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Q1) ________ applications integrate information from multiple functions and business processes to enhance the performance of the organization as a whole.
Answer: Enterprise
Q2) In ________, digital technology and the Internet are used to execute the major business processes in the enterprise.
A) e-commerce
B) e-business
C) enterprise applications
D) MIS
E) SCM
Answer: B
Q3) Executive support systems are information systems that support the
A) long-range planning activities of senior management.
B) knowledge and data workers in an organization.
C) decision making and administrative activities of middle managers.
D) day-to-day processes of production.
E) transactional needs of the organization.
Answer: A
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Chapter 3: Information Systems, Organizations, and Strategy
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Q1) The value chain model
A) categorizes five related advantages for adding value to a firm's products or services.
B) sees the supply chain as the primary activity for adding value.
C) categorizes four basic strategies a firm can use to enhance its value chain.
D) highlights specific activities in the business where competitive strategies can best be applied.
E) enables more effective product differentiation.
Answer: D
Q2) A(n) ________ is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market.
A) value chain
B) support web
C) value web
D) consortium
E) firm network
Answer: C
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Page 5
Chapter 4: Ethical and Social Issues in Information Systems
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Sample Questions
Q1) Any intellectual work product that isn't based on public knowledge can be classed as a trade secret.
A)True
B)False
Q2) The routine violation of individual privacy is made more difficult by advances in data storage.
A)True
B)False
Q3) COPPA is a set of five principles developed by the FTC that most American and European privacy law is based on.
A)True
B)False
Q4) Describe three technology trends that pose ethical issues, giving an example for each of its ethical or moral impact.
Q5) Most Internet businesses do very little to protect the privacy of their customers.
A)True
B)False
Q6) Describe how a cookie works.
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Chapter 5: It Infrastructure and Emerging Technologies
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Q1) Which model can be used to analyze the direct and indirect costs to help firms determine the actual cost of specific technology implementations?
A) supply and demand
B) return on investment
C) breakeven point
D) cost-benefit analysis
E) total cost of ownership
Q2) The technology trends exhibited by Portugal Telecom, as discussed in the chapter opening case, illustrate the shift away from green computing.
A)True
B)False
Q3) ________ are computers consisting of a circuit board with processors, memory, and network connections that are stored in racks.
A) Mainframes
B) Rack servers
C) Cloud servers
D) Hybrid servers
E) Blade servers
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Chapter 6: Foundations of Business Intelligence: Databases and Information Management
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Sample Questions
Q1) In terms of data relationships, associations refers to
A) events linked over time.
B) patterns that describe a group to which an item belongs.
C) occurrences linked to a single event.
D) undiscovered groupings.
E) relationships between different customers.
Q2) In a relational database, the three basic operations used to develop useful sets of data are
A) select, project, and where.
B) select, join, and where.
C) select, project, and join.
D) where, from, and join.
E) where, find, and select.
Q3) A database server is software that handles all application operations between browser-based computers and a company's back-end business applications or databases.
A)True
B)False
Q4) Describe the ways in which database technologies could be used by a toy manufacturer to achieve product differentiation.
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Chapter 7: Telecommunications, the Internet, and Wireless Technology
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Q1) In a telecommunications network architecture, a protocol is
A) a device that handles the switching of voice and data in a local area network.
B) a standard set of rules and procedures for control of communications in a network.
C) a communications service for microcomputer users.
D) the main computer in a telecommunications network.
E) a pathway through which packets are routed.
Q2) A VPN
A) is an encrypted private network configured within a public network.
B) is more expensive than a dedicated network.
C) provides secure, encrypted communications using Telnet.
D) is an Internet-based service for delivering voice communications.
E) is a proprietary networking service technology developed by individual corporations.
Q3) Identify the layers of the Department of Defense reference model for TCP/IP, and describe how this model works.
Q4) How are RFID systems used in inventory control and supply chain management?
Q5) What are wireless sensor networks?
How do they work and what are they used for?
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Chapter 8: Securing Information Systems
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Q1) The HIPAA Act of 1996
A) requires financial institutions to ensure the security of customer data.
B) specifies best practices in information systems security and control.
C) imposes responsibility on companies and management to safeguard the accuracy of financial information.
D) outlines medical security and privacy rules.
E) identifies computer abuse as a crime and defines abusive activities.
Q2) Electronic data are more susceptible to destruction, fraud, error, and misuse because information systems concentrate data in computer files that A) are easily decrypted.
B) can be opened with easily available software.
C) may be accessible by anyone who has access to the same network.
D) are unprotected by up-to-date security systems.
E) are rarely validated.
Q3) An acceptable use policy defines the acceptable level of access to information assets for different users.
A)True
B)False
Q4) What are the security challenges faced by wireless networks?
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Chapter 9: Achieving Operational Excellence and Customer
Intimacy: Enterprise Applications
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Q1) Identify at least four benefits and four challenges of enterprise systems.
Q2) A suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes best describes A) process management software.
B) ERP systems.
C) groupware.
D) application software.
E) supply chain management systems.
Q3) Safety stock acts as a buffer for the lack of flexibility in the supply chain.
A)True
B)False
Q4) ________ modules use many of the same data, tools, and systems as CRM to enhance collaboration between a company and its selling partners.
A) SCM
B) SFA
C) ERM
D) DRM
E) PRM
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Chapter 10: E-Commerce: Digital Markets, Digital Goods
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Q1) All previous mass media in modern history, including the printing press, use a broadcast model where content is created in a central location by experts.
A)True
B)False
Q2) Rich media advertisements are a sales-oriented marketing format.
A)True
B)False
Q3) The Internet shrinks information asymmetry.
A)True
B)False
Q4) E-commerce refers simply to the use of the Internet and the Web to transact business.
A)True
B)False
Q5) Podcasting allows subscribers to listen to live, streaming radio and other audio content.
A)True
B)False
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Chapter 11: Managing Knowledge
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Q1) Virtually all expert systems deal with problems of
A) policy development.
B) classification.
C) logic and control.
D) high complexity.
E) imprecise rules.
Q2) Which of the following describes a difference between neural networks and genetic algorithms?
A) Genetic algorithms are designed to process large amounts of information.
B) Genetic algorithms are a type of knowledge discovery, while neural networks are an intelligent technique.
C) Neural networks are programmed to "learn."
D) Genetic algorithms are designed to work with small amounts of data, while neural networks can handle large quantities of data.
E) Neural networks are a type of machine learning, whereas genetic algorithms are static programs.
Q3) Case-based reasoning is not well-suited for diagnostic systems in medicine.
A)True
B)False
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Page 13
Chapter 12: Enhancing Decision Making
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Q1) Which of the following companies is not one of the top five producers of business intelligence and analytics products?
A) Sun
B) Microsoft
C) SAP
D) IBM
E) SAS
Q2) Which of the following statements best describes the business value of improved decision making?
A) Improved decision making creates better products.
B) Improved decision making results in a large monetary value for the firm as numerous small daily decisions affecting efficiency, production, costs, and more add up to large annual values.
C) Improved decision making enables senior executives to more accurately foresee future financial trends.
D) Improved decision making strengthens customer and supplier intimacy, which reduces costs.
E) Improved decision making creates a better organizational culture.
Q3) Describe MIS and DSS and differentiate between them.
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Page 14
Chapter 13: Building Information Systems
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Sample Questions
Q1) ________ development focuses on rapid delivery of working software by breaking a large project into a series of small sub-projects that are completed in short periods of time using iteration and continuous feedback.
A) Agile
B) Rapid application
C) Joint application
D) Object-oriented
E) Traditional
Q2) Discuss the role and influence the user plays in software development.
Q3) Groups of objects are assembled into software components for common functions, which can be combined into large-scale business applications, in which type of software development?
A) object-oriented development
B) component-based development
C) structured methodologies
D) RAD
E) Agile development
Q4) The oldest method for building information systems is prototyping.
A)True
B)False
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Chapter 14: Managing Projects
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Q1) To best evaluate, from a financial standpoint, an IT investment whose benefits cannot be firmly established in advance, you would use
A) capital budgeting.
B) the real option pricing model.
C) a scoring model.
D) the net present value.
E) a portfolio analysis.
Q2) Which of the following is not one of the activities of the systems analyst?
A) acting as a change agent
B) communication with users
C) mediating between competing interest groups
D) formulation of capital budgeting models
E) deciding which systems to develop
Q3) The design of jobs, health issues, and the end-user interface of information systems are all considerations in the field of ergonomics.
A)True
B)False
Q4) The ________ is the part of the system that users interact with.
Q5) ________ methods rely on measures of cash flows into and out of the firm.
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Chapter 15: Managing Global Systems
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Q1) In relation to global systems building, the Internet
A) allows the seamless flow of information through the enterprise.
B) affords local groups stable broadband access.
C) has reduced networking problems.
D) reduced the need for skilled IT employees.
E) has increased the need for private networks.
Q2) A force in the environment to which businesses must respond and that influences the direction of the business is called a business
A) driver.
B) threat.
C) process.
D) matrix.
E) strategy.
Q3) The way to identify core business processes is to conduct a
A) cost-benefit analysis.
B) work-flow analysis.
C) business process analysis.
D) feasibility analysis.
E) systems analysis.
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Page 17