Section 1
   
Question 1
__________ is an XML-based specification for publishing financial information.
Question options:
  

Extensible Rights Markup Language
 

Extensible Access Control Markup   Language
 

Extensible Application Markup   Language
 

Extensible Business Reporting   Language
 
Question 2
__________ can be used just about anywhere a unique identification system might be needed, such as on clothing, pets, cars, keys, missiles, or manufactured parts.
Question options:
  

XML tags
 

RFID tags
 

Spintronics
 

HTML tags
 
Question 3
Fen-phen was an anti-obesity medication that consisted of two drugs: fenfluramine and phentermine. Fenfluramine was initially marketed by American Home Products, but was shown to cause potentially fatal pulmonary hypertension and heart valve problems. This eventually led to the withdrawal of the product and legal damages of over $13 billion. This is an example of:
Question options:
  

lean manufacturing.
 

the bullwhip effect.
 

a product recall.
 

production control.
 
Question 4
Which of the following statements is true about XML?
Question options:
  

XML cannot be tailored to share   any data across applications over the Web.
 

XML is not standardized.
 

XML specifies a particular   formatting.
 

XML instructs systems as to how   information should be interpreted and used.
 
Question 5
Which of the following examples portrays the 24/7/365 operation of a CRM system? processes
Question options:
  

Web-based interfaces that provide   product information, sales status, support information, issue tracking, and   so on
 

Tracking customer behavior over   time that helps to identify future opportunities for product and service   offerings
 

Improved record keeping and   efficient methods of capturing customer complaints that assist in identifying   problems faster
 

Integrated information that   removes information handoffs, speeding both sales and support
 
Question 6
Which of the following portrays the individualized service benefit of a CRM system?
Question options:
  

Web-based interfaces providing   product information, sales status, support information, issue tracking, and   so on
 

Integrated information which   removes information handoffs, which speeds both sales and support processes
 

Learning how each customer defines   product and service quality so that customized product, pricing, and services   can be designed or developed collaboratively
 

Integrating all information for   all points of contact with the customers, so that all who interact with   customers have the same view and understand current issues
 
Question 7
Which of the following is a component of the collaborative CRM system?
Question options:
  

Sales force automation
 

Enterprise resource planning   systems
 

Enterprise marketing management
 

Technologies to facilitate   communication
 
Question 8
__________ is a business model in which the suppliers to a manufacturer manage the manufacturer’s inventory levels based on preestablished service levels.
Question options:
  

Just-in-case manufacturing
 

Vendor-managed inventory
 

Lean manufacturing
 

Scan-based trading
 
Question 9
Organizations that effectively utilize __________ can more easily customize marketing campaigns from the segment level to even the individual customer.
Question options:
  

collaborative CRM
 

integrated CRM
 

analytical CRM
 

operational CRM
 
Question 10
Lee’s department store uses the every day low prices strategy. This strategy hinges upon the store’s ability to obtain consumer goods at the cheapest possible price and pass these savings on to consumers. Lee’s store also developed its own distribution network for supplying its retail outlets with consumer goods. This distribution network allowed them to cut out external suppliers and middlemen, further driving down business costs. This implies that the competitive strategy used by this store would most likely focus on:
Question options:
  

supply chain effectiveness.
 

supply chain efficiency.
 

supply chain visibility.
 

operational CRM.
 
Question 11
Which of the following statements is true about product flow, a key element of supply chain execution?
Question options:
  

It refers to the movement of   information along the supply chain, such as order processing and delivery   status updates.
 

It refers to the movement of goods   from the supplier to production, from production to distribution, and from   distribution to the consumer.
 

It tracks a one-way flow of   products from producers to consumers but cannot process returns or customer   refunds.
 

It refers to the ability to track   products as they move through the supply chain.
 
Question 12
Which of the following is the main objective of information systems that focus on improving supply chains?
Question options:
  

Decentralizing the organizations
 

Discouraging sustainable   production processes
 

Discouraging vendor-managed   inventory systems
 

Accelerating product development   and innovation
 
Question 13
Which of the following statements is true about RFID systems?
Question options:
  

All RFID tags are small and   relatively inexpensive.
 

RFID information is readable   depending on the entity’s position.
 

RFID scanning can be done at   greater distances than bar code scanning.
 

RFID tags contain less information   than bar codes.
 
Question 14
Which of the following statements about just-in-time strategies is true?
Question options:
  

Retailers using this strategy   allow suppliers to maintain ownership of inventory within their warehouses or   stores until items are scanned at the point of sale.
 

Companies using this strategy   allow the suppliers to manage the manufacturer’s inventory levels based on   preestablished service levels.
 

Companies using this strategy are   trying to optimize their ordering quantities such that parts or raw material   arrive just when they are needed for production.
 

Companies using this strategy   maintain large inventories of supplies, parts, warehousing resources, and   extra workers to meet production contingencies.
 
Question 15
Which of the following is an example of supply chain efficiency?
Question options:
  

Apple sources its raw materials in   ways that keep its costs low.
 

Rolex positions itself as a   prestige brand.
 

Caterpillar has high spare parts   availability.
 

Federal Express focuses on   providing superior service.
 
Question 16
Computer maker, Dell, realized the problems with keeping large inventories, especially because of the fast rate of obsolescence of electronics components. Dell now keeps only about two hours of inventory in its factories. The company is most likely using a __________ system.
Question options:
  

scan-based trading
 

just-in-time inventory management
 

customer-managed inventory
 

vendor-managed inventory
 
Question 17
MaxSteel Inc., has been supplying steel to a well-known car manufacturer, Agis Corp., for the past 3 years. Concerned employees at MaxSteel can directly access Agis Corp.’s inventory and sales information via electronic data interchange. This allows MaxSteel to monitor Agis Corp.’s inventory levels on a real-time basis. The system has worked well for both companies so far and there has never been any delay in the supply of steel. Which of the following, if true, would most strengthen Agis’ supply chain strategy?
Question options:
  

Agis Corp. has a strong desire to   purchase MaxSteel in order to reduce dependency.
 

Agis Corp. is taking measures to   directly contact the consumers by removing wholesalers and retailers from   their supply chain.
 

Agis Corp.’s management decides to   take strong measures for increasing their safety stock of all raw materials.
 

Agis Corp. is taking measures to   ensure that the information shared with MaxSteel will not be shared outside   their organization.
 
Question 18
Which of the following statements about an RFID passive tag is true?
Question options:
  

They have an internal battery   source.
 

They have a range up to 300 feet   or more.
 

They are small and relatively   inexpensive.
 

They cost more than active tags.
 
Question 19
Comptel, a world leader in computer hardware, differentiates itself from its competitors by providing excellent after-sales service. This implies that the competitive strategy used by Comptel would most likely focus on:
Question options:
  

supply chain effectiveness.
 

supply chain visibility.
 

supply network collaboration.
 

supply chain analytics.
 
Question 20
Which of the following is a main objective of customer relationship management applications focusing on downstream information flows?
Question options:
  

To portray a positive corporate   image
 

To develop demand forecasts
 

To encourage the bullwhip effect
 

To track global spending on   suppliers
 
Section 2
   
Question 21
BelAir has decided to buy an information system from an external vendor. The company has made a list of its requirements and asked prospective vendors to submit proposals for the system. Which of the following is the next step in the company’s external acquisition process?
Question options:
  

Systems planning
 

Systems analysis
 

Vendor selection
 

Proposal evaluation
 
Question 22
Which of the following scenarios demonstrates system efficiency?
Question options:
  

Barker’s was able to easily reach   its sales goals through the use of its information system.
 

Barker’s new information system   allowed the company to set achievable targets.
 

The new information system at   Barker’s helped employees work faster, with less effort.
 

Barker’s new information system allowed   the company to reach its monthly targets.
 
Question 23
BelAir has submitted a request for proposal to a number of vendors. It must now evaluate the proposals it has received. Which of the following methods can it use to compare the different systems?
Question options:
  

Systems benchmarking
 

Alpha testing
 

Data modeling
 

Beta testing
 
Question 24
The processing and logic operations of an information system refer(s) to the:
Question options:
  

procedures that transform raw data   inputs into new or modified information.
 

multiple points of contact between   a system and users.
 

transfer of data across system   components.
 

procedures for entering data into   a system.
 
Question 25
Which of the following best describes developmental testing?
Question options:
  

Testing the system as a whole to   see if it performs adequately
 

Testing the system to see if it   meets design requirements
 

Testing of the capabilities of the   system in the user environment with actual data
 

Testing the correctness of   individual modules and the integration of multiple modules
 
Question 26
Which of the following is an example of a business case argument based on fear?
Question options:
  

The system can help us meet both   individual as well as organizational goals.
 

If we do not implement this   system, our competitors could gain a significant advantage over us.
 

Using this system will help our   employees serve customers more efficiently.
 

This system has the potential to   reduce required effort by 40 percent.
 
Question 27
BelAir Tech has a five-member team in charge of the development and maintenance of its information systems. An information system is in place, and the team performs routine maintenance to keep it running smoothly. Which of the following scenarios is an example of perfective maintenance?
Question options:
  

Jason notices a faulty component   in the system and modifies the component.
 

Justin works on the system to make   the user interface more user-friendly.
 

Sara knows that the company is   migrating to a different operating environment next month and makes changes   to the system.
 

Dylan predicts that the company’s   old system may fail under new demands and takes steps to avert this.
 
Question 28
The total cost of ownership of a system refers to:
Question options:
  

the total cost of acquisition of a   particular system.
 

all costs associated with ongoing   use and maintenance of a system.
 

all non-recurring costs associated   with a system.
 

the total cost of acquisition and   all costs associated with use and maintenance of a system.
 
Question 29
Which of the following is true for patch management?
Question options:
  

It helps in the process of   transforming the system design into a working computer system.
 

It helps in decommissioning the   current system and installing the new system in the organization.
 

It helps in performing corrective   or preventive maintenance for a system.
 

It helps in testing the   correctness of individual modules and the integration of multiple modules of   a system.
 
Question 30
Which of the following is true of system effectiveness?
Question options:
  

It is the extent to which a system   allows a firm to plan its tasks.
 

It is the extent to which a system   enables the firm to accomplish goals well.
 

It is the extent to which a system   enables the firm to do things faster, at lower cost.
 

It is the extent to which a system   allows a firm to cut operational costs.
 
Question 31
Which of the following is an example of a basic relationship between an outsourcing vendor and client?
Question options:
  

STS Systems usually offers BelAir   a discount on every purchase it makes.
 

BelAir sets its system preferences   according to STS products.
 

BelAir buys a system from the   vendor who offers the cheapest prices.
 

STS has a direct stake in the   success of BelAir’s performance.
 
Question 32
Which of the following is an example of an intangible cost for a system?
Question options:
  

Cost of employee recruitment and   retention
 

Cost of installation and   maintenance
 

Employee salaries
 

Cost of losing customers
 
Question 33
Which of the following statements is true of a request for proposal?
Question options:
  

It is a form sent by vendors to   potential customers.
 

It is a list of user requirements   sent to prospective vendors.
 

It invites customers to bid for a   product offered by a vendor.
 

It is a summary of the vendor’s   offerings to a client.
 
Question 34
Which of the following is true of Software as a Service?
Question options:
  

It is not scalable in response to   large increases in demand.
 

It involves fixed monthly and   yearly costs for the services.
 

It requires the installation of   specialized interfaces at the client end.
 

It allows clients to access   services on an as-needed basis.
 
Question 35
A break-even analysis:
Question options:
  

attempts to summarize the overall   value of money for a project or proposal.
 

identifies at what point tangible   benefits equal tangible costs.
 

analyzes the relevant cash flow   streams associated with the system at the organization’s discount rate.
 

refers to the discounted sum, or   present value, of a stream of costs associated with a project or proposal.
 
Question 36
__________ licenses are activated as soon as the packaging of the software has been removed.
Question options:
  

Click-wrap
 

Shareware
 

Shrink-wrap
 

Volume
 
Question 37
A(n) __________ license refers to a license primarily used for downloaded software that requires computer users to choose “I accept” before installing the software.
Question options:
  

click- wrap
 

shareware
 

enterprise
 

volume
 
Question 38
Which of the following is the main advantage of customizable software over off-the-shelf software?
Question options:
  

Cost effectiveness
 

Ease of procurement
 

Problem specificity
 

Lower risks
 
Question 39
Which of the following steps takes place in an organization during both in-house systems development as well as external acquisition?
Question options:
  

Vendor selection
 

Systems analysis
 

Development of an RFP
 

Systems selection
 
Question 40
Which of the following is an example of a recurring cost associated with an information system?
Question options:
  

Technology purchases
 

Purchase of office space
 

Employee salaries
 

Installation charges