| Section 1 |
| Question 1 |
__________ is an XML-based specification for publishing financial information.
Question options:
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| Extensible Rights Markup Language |
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| Extensible Access Control Markup Language |
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| Extensible Application Markup Language |
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| 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:
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| XML tags |
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| RFID tags |
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| Spintronics |
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| 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:
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| lean manufacturing. |
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| the bullwhip effect. |
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| a product recall. |
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| production control. |
| Question 4 | |
Which of the following statements is true about XML?
Question options:
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| XML cannot be tailored to share any data across applications over the Web. |
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| XML is not standardized. |
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| XML specifies a particular formatting. |
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| 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:
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| Web-based interfaces that provide product information, sales status, support information, issue tracking, and so on |
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| Tracking customer behavior over time that helps to identify future opportunities for product and service offerings |
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| Improved record keeping and efficient methods of capturing customer complaints that assist in identifying problems faster |
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| 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:
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| Web-based interfaces providing product information, sales status, support information, issue tracking, and so on |
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| Integrated information which removes information handoffs, which speeds both sales and support processes |
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| Learning how each customer defines product and service quality so that customized product, pricing, and services can be designed or developed collaboratively |
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| 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:
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| Sales force automation |
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| Enterprise resource planning systems |
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| Enterprise marketing management |
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| 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:
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| Just-in-case manufacturing |
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| Vendor-managed inventory |
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| Lean manufacturing |
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| 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:
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| collaborative CRM |
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| integrated CRM |
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| analytical CRM |
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| 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:
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| supply chain effectiveness. |
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| supply chain efficiency. |
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| supply chain visibility. |
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| operational CRM. |
| Question 11 | |
Which of the following statements is true about product flow, a key element of supply chain execution?
Question options:
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| It refers to the movement of information along the supply chain, such as order processing and delivery status updates. |
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| It refers to the movement of goods from the supplier to production, from production to distribution, and from distribution to the consumer. |
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| It tracks a one-way flow of products from producers to consumers but cannot process returns or customer refunds. |
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| 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:
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| Decentralizing the organizations |
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| Discouraging sustainable production processes |
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| Discouraging vendor-managed inventory systems |
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| Accelerating product development and innovation |
| Question 13 | |
Which of the following statements is true about RFID systems?
Question options:
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| All RFID tags are small and relatively inexpensive. |
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| RFID information is readable depending on the entity's position. |
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| RFID scanning can be done at greater distances than bar code scanning. |
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| RFID tags contain less information than bar codes. |
| Question 14 | |
Which of the following statements about just-in-time strategies is true?
Question options:
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| 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. |
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| Companies using this strategy allow the suppliers to manage the manufacturer's inventory levels based on preestablished service levels. |
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| 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. |
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| 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:
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| Apple sources its raw materials in ways that keep its costs low. |
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| Rolex positions itself as a prestige brand. |
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| Caterpillar has high spare parts availability. |
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| 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:
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| scan-based trading |
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| just-in-time inventory management |
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| customer-managed inventory |
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| 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:
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| Agis Corp. has a strong desire to purchase MaxSteel in order to reduce dependency. |
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| Agis Corp. is taking measures to directly contact the consumers by removing wholesalers and retailers from their supply chain. |
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| Agis Corp.'s management decides to take strong measures for increasing their safety stock of all raw materials. |
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| 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:
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| They have an internal battery source. |
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| They have a range up to 300 feet or more. |
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| They are small and relatively inexpensive. |
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| 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:
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| supply chain effectiveness. |
|
| supply chain visibility. |
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| supply network collaboration. |
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| 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:
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| To portray a positive corporate image |
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| To develop demand forecasts |
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| To encourage the bullwhip effect |
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| 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:
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| Systems planning |
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| Systems analysis |
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| Vendor selection |
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| Proposal evaluation |
| Question 22 | |
Which of the following scenarios demonstrates system efficiency?
Question options:
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| Barker's was able to easily reach its sales goals through the use of its information system. |
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| Barker's new information system allowed the company to set achievable targets. |
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| The new information system at Barker's helped employees work faster, with less effort. |
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| 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:
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| Systems benchmarking |
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| Alpha testing |
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| Data modeling |
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| Beta testing |
| Question 24 | |
The processing and logic operations of an information system refer(s) to the:
Question options:
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| procedures that transform raw data inputs into new or modified information. |
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| multiple points of contact between a system and users. |
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| transfer of data across system components. |
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| procedures for entering data into a system. |
| Question 25 | |
Which of the following best describes developmental testing?
Question options:
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| Testing the system as a whole to see if it performs adequately |
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| Testing the system to see if it meets design requirements |
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| Testing of the capabilities of the system in the user environment with actual data |
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| 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:
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| The system can help us meet both individual as well as organizational goals. |
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| If we do not implement this system, our competitors could gain a significant advantage over us. |
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| Using this system will help our employees serve customers more efficiently. |
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| 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:
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| Jason notices a faulty component in the system and modifies the component. |
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| Justin works on the system to make the user interface more user-friendly. |
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| Sara knows that the company is migrating to a different operating environment next month and makes changes to the system. |
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| 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:
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| the total cost of acquisition of a particular system. |
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| all costs associated with ongoing use and maintenance of a system. |
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| all non-recurring costs associated with a system. |
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| 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:
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| It helps in the process of transforming the system design into a working computer system. |
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| It helps in decommissioning the current system and installing the new system in the organization. |
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| It helps in performing corrective or preventive maintenance for a system. |
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| 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. |
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| It is the extent to which a system enables the firm to accomplish goals well. |
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| It is the extent to which a system enables the firm to do things faster, at lower cost. |
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| 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. |
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| 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:
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| Cost of employee recruitment and retention |
|
| Cost of installation and maintenance |
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| Employee salaries |
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| Cost of losing customers |
| Question 33 | |
Which of the following statements is true of a request for proposal?
Question options:
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| 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. |
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| It requires the installation of specialized interfaces at the client end. |
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| 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:
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| Click-wrap |
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| Shareware |
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| Shrink-wrap |
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| 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 |
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| enterprise |
|
| volume |
| Question 38 | |
Which of the following is the main advantage of customizable software over off-the-shelf software?
Question options:
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| Cost effectiveness |
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| Ease of procurement |
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| Problem specificity |
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| 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:
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| Vendor selection |
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| Systems analysis |
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| Development of an RFP |
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| Systems selection |
| Question 40 | |
Which of the following is an example of a recurring cost associated with an information system?
Question options:
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| Technology purchases |
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| Purchase of office space |
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| Employee salaries |
|
| Installation charges |
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