MCQ Question Bank

Chapter 1- Foundation

1. Stores like Grameenphone uses computer-based information system to help their

employees record customer purchases, keep track of inventory, and evaluate sales
trends.
False
Retail stores like Agora uses computer-based information system to help their employees
record customer purchases, keep track of inventory, and evaluate sales trends.

2. IS are limited as they cannot change in relation to their environments and they are not
adaptive/intelligent.
False
Many information systems are designed to change in relation to their environments and are
adaptive like intelligent software agents, expert systems, and highly specialized decision
support systems.

3. Hardware resources include procedures for data entry, error correction, and paycheck
distribution.
False
Software resources include procedures for data entry, error correction, and paycheck
distribution.

4. A business process can be any organized combination of people, hardware, software,

communications networks, data resources, and policies and procedures that stores,
retrieves, transforms, and disseminates information in an organization.
False
An IS can be any organized combination of people, hardware, software, communications
networks, data resources, and policies and procedures that stores, retrieves, transforms, and
disseminates information in an organization.

5. Software Resources for information system include specialists— systems analysts,

software developers, systems operators.
False
People Resources for information system include specialists— systems analysts, software
developers, systems operators.

6. The demand for systems analysts subsides as firms that already maximized their
efficiency with available technology.
False
The demand for systems analysts continues to grow to help firms maximize their efficiency
with available technology.
7. Executive support systems have always been needed to process data generated by, and
used in, business operations.
False
Operations support systems have always been needed to process data generated by, and
used in, business operations.

8. Hardware control systems monitor and control physical processes.

False
Process control systems monitor and control physical processes.

9. Computers have clearly defined boundaries like functions, modules, type of application,
department, or end-user group.
False
Information systems have clearly defined boundaries like functions, modules, type of
application, department, or end-user group.

10. Expert systems support a variety of operational and managerial applications of the basic
business functions of a company.
False
Functional business systems support a variety of operational and managerial applications of
the basic business functions of a company. Examples: information systems that support
applications in accounting, finance, marketing, operations management, and human
resource management.

11. Network resources for information system include product descriptions, customer
records, employee files, inventory databases.
False
Data resources for information system include product descriptions, customer records,
employee files, inventory databases.

12. Organizations are examples of non-adaptive systems because they can modify
themselves to meet the demands of a changing environment.
False
Organizations are examples of adaptive systems because they can modify themselves to
meet the demands of a changing environment.

13. Strategic management systems are knowledge-based systems that support the creation,
organization, and dissemination of business knowledge within the enterprise.
False
Knowledge management systems are knowledge-based systems that support the creation,
organization, and dissemination of business knowledge within the enterprise. Examples:
intranet access to best business practices, sales proposal strategies, and customer problem
resolution systems.

14. IS Professionals expertise include management reports and business documents using
text and graphics displays, audio responses, and paper forms.
False
Information products for information system include management reports and business
documents using text and graphics displays, audio responses, and paper forms.

15. E-banking is the buying, selling, marketing, and servicing of products, services, and
information over a variety of computer networks.
False
E-commerce is the buying, selling, marketing, and servicing of products, services, and
information over a variety of computer networks.

16. Employee information systems provide critical information from MIS, DSS, BI, and other
sources tailored to the information needs of executives.
False
Executive information systems provide critical information from MIS, DSS, BI, and other
sources tailored to the information needs of executives. Examples: systems for easy access
to analyses of business performance, actions of competitors, and eco- nomic developments
to support strategic planning.

17. Business agility (BA) can be used to drive strategic business decisions.
False
Business intelligence (BI) can be used to drive strategic business decisions.

18. Information systems has a limited use of feedback and control to improve their
effectiveness.
False
Information systems make extensive use of feedback and control to improve their
effectiveness using error messages, dialog boxes, passwords, and user rights management.

19. When information system applications focus on providing information and support for
effective decision making by managers, they are called Computer Support Systems.
False
When information system applications focus on providing information and support for
effective decision making by managers, they are called Management Support Systems.

20. Information system makes the decision making process complex.

False
Information systems help store managers and other business professionals make better
decisions.
21. Networks are made up of interrelated components like hardware, software, peripherals,
and people.
False
Information systems are made up of interrelated components like people, hardware,
software, peripherals, and networks.

22. Human resources for information system include machines— computers, video
monitors, magnetic disk drives, printers, optical scanners.
False
Hardware resources for information system include machines— computers, video monitors,
magnetic disk drives, printers, optical scanners.

23. We have been using information systems since 1950s.

False
We have been using information systems since the dawn of civilization.

24. Process Control System are operations support systems that record and process the data
resulting from business transactions.
False
Transaction Processing System are operations support systems that record and process the
data resulting from business transactions.

25. Management information systems support operations or management processes that

provide a firm with strategic products, services, and capabilities for competitive
advantage.
False
Strategic information systems support operations or management processes that provide a
firm with strategic products, services, and capabilities for competitive advantage.

26. Microsoft Access is used for accounting in small office or home office (SOHO) setting.
False
QuickBooks is a popular accounting package that automates small office or home office
(SOHO) accounting transaction processing while providing business owners with
management reports.

27. Data is information that have been converted into a meaningful and useful context for
specific end users.
False
Information is data that have been converted into a meaningful and useful context for
specific end users.
28. Enterprise resources plannign system involve the use of software tools to support
communication, coordination, and collaboration among the members of networked
teams and workgroups.
False
Enterprise collaboration system involve the use of software tools to support communication,
coordination, and collaboration among the members of networked teams and workgroups.

29. Executive support systems provide interactive ad hoc support for the decision-making
processes of managers and other business professionals.
False
Decision support systems. Provide interactive ad hoc support for the decision-making
processes of managers and other business professionals. Examples: product pricing,
profitability forecasting, and risk analysis systems.

30. Computer intelligence refers to all applications and technologies in the organization that
are focused on the gathering and analysis of data and information.
False
Business intelligence BI refers to all applications and technologies in the organization that
are focused on the gathering and analysis of data and information.

31. Today’s expert systems (ES) based systems include intelligent software agents that can
be programmed and deployed inside a system to act on behalf of their owner,
False
Today’s artificial intelligence (AI) based systems include intelligent software agents that can
be programmed and deployed inside a system to act on behalf of their owner,

32. Information are raw facts or observations, typically about physical phenomena or
business transactions.
False
Data are raw facts or observations, typically about physical phenomena or business
transactions.

33. Decision support systems have always been needed to process data generated by, and
used in, business operations.
False
Operations support systems have always been needed to process data generated by, and
used in, business operations.

34. Only innovative application of information technologies allows gaining a strategic

advantage over competitors.
False
Gaining a strategic advantage over competitors requires the innovative application of
information technologies.

35. Business intelligence is the use of Internet technologies to work and empower business
processes, e-commerce, and enterprise collaboration within a company and with its
customers, suppliers, and other business stakeholders.
False
E-business is the use of Internet technologies to work and empower business processes, e-
commerce, and enterprise collaboration within a company and with its customers, suppliers,
and other business stakeholders.

36. Data resources for information system include communications media, communications
processors, network access, control software.
False
Network resources for information system include communications media, communications
processors, network access, control software.

37. A secondary advantage of ERP systems lies in their common interface for all computer-
based organizational functions and their tight integration and data sharing.
False
The primary advantage of ERP systems lies in their common interface for all computer-based
organizational functions and their tight integration and data sharing.

38. A computer is defined as a set of interrelated components, with a clearly defined

boundary, working together to achieve a common set of objectives by accepting inputs
and producing outputs in an organized transformation process.
false
A system is defined as a set of interrelated components, with a clearly defined boundary,
working together to achieve a common set of objectives by accepting inputs and producing
outputs in an organized transformation process.

39. Network resources for information system include programs—operating system

programs, spreadsheet programs, word processing programs, payroll programs.
False
Software resources for information system include programs—operating system programs,
spreadsheet programs, word processing programs, payroll programs.

40. Knowledge management systems are knowledge-based systems that provide expert
advice and act as expert consultants to users.
False
Expert systems are knowledge-based systems that provide expert advice and act as expert
consultants to users. Examples: credit application advisor, process monitor, and diagnostic
maintenance systems.

41. Enterprise systems are knowledge-based information systems that support the creation,
organization, and dissemination of business knowledge to employees and managers
throughout a company.
False
Knowledge management systems are knowledge-based information systems that support
the creation, organization, and dissemination of business knowledge to employees and
managers throughout a company.

42. Hardware resources for information system include end users—anyone else who uses
information systems.
False
People resources for information system include end users—anyone else who uses
information systems.

43. Careers in IS are as diverse and exciting as the technologies used in them; IS professionals
have career opportunities in every business environment and activity throughout the
world.
True

44. Vital roles of IS does NOT include ...

Support of business processes and operations

Support of decision making by employees and managers
Support of strategies for competitive advantage
Correct- Provide competitive advantage

45. Components of an IS does NOT include ...

Software
Hardware
Network
Database
Correct- Tables
People

46. Which of these is an Enterprise System?

Procurement
Customer Management
Manufacturing
Correct- Ebusiness Suite
Transaction Processing
Adhoc reporting

47. Which of these is a Functional System?

Customer Relationship Management
Correct- Human Resource Management
Microsoft Excel

48. ... and the ... of an IS is connected within an organization (e.g. Daraz).
Correct- Front-end, back-end
Supplier, Customer
Internal, Customer
Supplier, Internal
Customer, Supplier

49. Relational Database does NOT includes

Tables
Relationships
Records/rows
Fields/columns
Correct- Software

50. Systems Approach in general include

Software
Hardware
Correct- Control
Storage

51. Software resources does not include

Data Entry
Paycheck Distribution
Error Correction
Correct- Graphics Processing Unit

52. Major areas of IS knowledge does NOT include

Management Challenges
Development Processes
Business Applications
Information Technologies
Foundation Concepts
Customer Relationship Management
Correct: Human Resource Management