INSY 8-13
19. A small cluster of three countries (China, Malaysia and Korea) are creating a reputation for this type of outsourcing. a) Farshoring b) Nearshoring c) Cloud computing d) Captive center e) Full outsourcing
Hard (b) Response: See page 221
9. An organization may convert from an old system to a new system by choosing to run both the old and new systems at the same time until the new system is fully accepted. This is known as __________. a) Cutover b) Parallel conversion c) Direct cutover d) Agile development e) SDLC
b Response: See page 241
7. What is at the center of the project triangle? a) Agility b) Quality c) Speed d) Cost e) Focus
b (Easy) Response: See page 231
2.Outsourcing to a company located in the same time zone is referred to as this type of sourcing. a) Farshoring b) Nearshoring c) Zoneshoring d) Insourcing e) Cloud computing
b (Easy) Response: See pages 220-221
16. A local marketing firm is considering launching a new and extensive social media marketing campaign. This investment of resources is being looked at through the length of the project since it is anticipated to last at least 5 years. What financial calculation should be used to compute the investment's value, taking into account the time value of money? a) ROI b) NPV c) EVA d) IRR e) TCO
b (Hard) Response: See page 177
29. While a relatively simple method for funding, corporate budgeting ______________ a) helps control the costs of IT. b) may result in an IT organization that is less end-user oriented. c) encourages sharing of funding resources between IT and business units. d) levies charges on specific users or business units. e) gives business managers sole control over IT decisions.
b (Hard) Response: See page 184
19. The decisions that determine how IT assets are structured fall into which one of the five major IT decision categories? a) IT principles b) IT architecture c) IT infrastructure d) Business application needs e) IT investment and prioritization
b (Hard) Response: See page 196
6.Which one of the following needs would suggest outsourcing as an option? a) Reduced capacity. b) Ease of transition to new technologies c) Increase supplier relations d) Growth of data centers e) All of the above.
b (Hard) Response: See page 212
7. Sam has just purchased 10 new high speed color laser printers for his company. He is very excited because he got a 40% discount and paid only $2,990 for each unit. His boss, Joe, wants to know things such as operating costs, support, overhead, etc. for the printers. Joe wants to know this value: a) RCO b) TCO c) ROI d) NPV e) EVM
b (Hard) Response: See pages 185-187
4. The responsibility of the IT organization is to: a) Manage core business functions like selling, accounting and manufacturing. b) Partner with business managers to ensure the right IS exists to support the business strategy. c) Set the business strategy. d) Have sole responsibility for building information systems for the organization. e) Design business processes.
b (Medium) Response: See page 170-171
18. A CIO must spend part of the day performing _____ tasks and the some part of the day working on operational tasks. Rarely can a CIO focus on just one task in any given day. a) Administrative b) Strategic c) Database d) Financial e) Technology
b (Medium) Response: See page 171
15. Critical to the business case is the identification of both _________ and ________. a) costs, risks b) costs, benefits c) advantages, disadvantages d) assumptions, risks e) benefits, detriments
b (Medium) Response: See page 173
25. The balanced scorecard: a) Is a tool used to communicate the organizational metrics using a traffic light approach (red/yellow/green). b) Is a method used to evaluate the health of an organization by looking at all value drivers such as the customers, the workforce, the financials and business processes. c) Focuses its attention on an organization's financials. d) Is used to communicate the TCO for an IT investment. e) Is one of many metrics used to evaluate the value of an IT investment.
b (Medium) Response: See page 178
10. ________ of the 1960's dictated a centralized approach to IT governance. a) Servers b) Mainframes c) Networks d) PCs e) The WWW
b (Medium) Response: See page 193
12. ______________ organizations scatter IT components in different locations to address local business needs. a) Distributed Control b) Decentralized c) Federalism d) Joint-Control e) Centralized
b (Medium) Response: See page 193
20. This IT governance archetype consists of IT individuals or groups of IT executives. a) Business monarchy b) IT monarchy c) Feudal d) Federal e) IT Duopoly
b (Medium) Response: See page 197
3. All of the following are frameworks for implementing Sarbanes-Oxley compliance EXCEPT: a) COSO b) BCP c) COBIT d) ITIL e) Committee for Sponsoring Organization of the Treadway Commission
b (Medium) Response: See page 201-203
1. This is an IT governance framework that is consistent with COSO controls. a) HIPPA b) COBIT c) SoX d) ISACA e) ISO
b (Medium) Response: See page 202
1. Kellwood, the American apparel maker, decided to consolidate and bring IT operations back in-house in order to reduce costs. Kellwood choose which of the following strategies? a) Outsource b) Backsource c) Offshore d) Captive center e) Farshore
b (Medium) Response: See page 208
7. In 1989, Kodak chose a(n) _____ approach to outsourcing IS activities and chose to work with suppliers like IBM, DEC and Businessland. This approach was soon dominated by other firms. a) offshore b) multivendor c) nearshore d) centralized e) full outsourcing
b (Medium) Response: See page 211
24. Outsourcing decisions can be difficult and expensive to reverse because of: a) Cultural differences. b) The complicated infrastructure and staffing considerations. c) Data security. d) Data loss. e) CMM.
b (Medium) Response: See page 223
1. In today's hypercompetitive business environment, firms that have strong project management skills have a higher likelihood of success because they are able to: a) Spend money wisely. b) Adapt processes and systems and therefore innovate faster than their competitors. c) Optimize business processes. d) Change and adapt in a slow yet methodical manner, reducing risk. e) Utilize social and mobile platforms.
b (Medium) Response: See page 229
10. This project cycle plan chart looks very much like a bar chart and is easy for management to read because of its visual nature. a) PERT b) Gantt c) CPM d) NPV e) Flowchart
b (Medium) Response: See page 235
17. To reduce risk, a project should have which one of the following qualities. a) High complexity b) High clarity c) Big in size d) Large in budget e) Lots of programmers.
b (Medium) Response: See page 248
1. Knowledge management is the process that generates, captures, codifies and __________ knowledge across an organization in order to achieve a competitive advantage. a) Analyzes b) Transfers c) Applies d) Limits e) Saves
b (Medium) Response: See page 260
9. This financial calculation provides a percentage rate that measures the relationship between the amount the business gets back from an investment and the amount invested. a) IRR b) ROI c) Payback d) NPV e) EVA
b (Medium) Response: See pages 176-177
22. A system development life cycle a) Assures us that as some systems die others are born in a sort of "circle of life." b) Is a chain of events that count down to the demise of a system. c) Illustrates the steps needed to go from one stage to another: for example, analysis to design to construction to implementation to operation to maintenance. d) Specifies how to build a prototype quickly then improve on it. e) Is a self-propelled ride at the "Technology Amusement Park" in San Francisco.
c (Easy) Response: See page 240
23. WalMart, the world's largest retailer, uses RFID tags to track movement of goods across its intense supply chain. One identifiable benefit is that pallets of goods no longer need to be manually logged by a worker when received. Instead, an information system automatically logs the goods as they arrive. This benefit is identified as which type of business change: a) Innovation b) Efficiency c) Cessation d) Work force reduction e) Doing new things
c (Hard) Response: See page 174
17. Mary is recommending IT investments in the neighborhood of $250 million for her company. However, the board is hesitant since it's such as capital-intensive project. If the project fails the company could go out of business. What financial calculation should they use? a) ROI b) NPV c) EVA d) IRR e) FV
c (Hard) Response: See page 177
9. IT organizations implement powerful information systems like ERP and SCM that provide centralized data repositories. In addition, business units have tools for their particular units that individuals can use to report on and analyze collected data. This IT governance approach is best described as: ________. a) Distributed Control b) Decentralized c) Federalism d) Joint-Control e) Centralized
c (Hard) Response: See page 194
11. Which one of the following is NOT one of the four essential elements of any project? a) Common project vocabulary b) Project team c) System evaluation d) Project cycle plan e) Project management
c (Hard) Response: See page 233
9. Organizations choose to outsource IT activities for all of the following reasons EXCEPT: a) To realize cost savings b) To have access to specialists they do not have in-house c) To create a core competency d) To infuse cash into the company e) To support capacity on demand
c (Hard) Response: See pages 211-212
13. To justify an IT investment and receive necessary support and approval, a manager must often create a(n) ________________. a) IT portfolio b) community plan c) business case d) workflow diagram e) business technology plan
c (Medium) Response: See page 173
28. All of the following are qualities of a dashboard EXCEPT: a) Highly summarized b) Key metric driven c) Raw data d) Effective Visualization e) Alerts
c (Medium) Response: See page 180
6. This is a balanced approach to managing a company's IT organization. a) Centralization b) Decentralization c) Federalism d) Joint-Control e) Business Centricity
c (Medium) Response: See page 193
13. The IT Governance Council reports directly to the board of directors or the ________. a) CIO b) CTO c) CEO d) COO e) CFO
c (Medium) Response: See page 199
8. The initial reason organizations outsourced IT was which one of the following? a) Downsizing b) Innovation c) Cost reduction d) Standardization e) Capacity
c (Medium) Response: See page 211
10. Outsourcing providers have more experience dealing with a large number of IS staff and as a result, are often good at doing all of the following EXCEPT: a) Marketing IS talent b) Providing relevant technical training c) Retaining IT workers for short-term employment d) Hiring good IT professionals e) Developing and sharing best practices
c (Medium) Response: See page 212
14. Organizations may shy away from cloud computing because _________ a) it does not support multiple time zones. b) it costs more money than offshoring. c) of increased data security and privacy concerns. d) SLAs cannot be established. e) short term contracts are required.
c (Medium) Response: See page 217
2. To help with organization and complexity, a project manager will break a project up into: a) Variables b) Business processes c) Subprojects d) Infrastructure e) Work
c (Medium) Response: See page 230
20. A successful project begins with a ____________ that articulates the purpose and details of the project, benefits and costs, stakeholders, and required resources. a) project plan b) Gantt chart c) business case d) dashboard e) strategy
c (Medium) Response: See page 232
8. This project cycle plan tends to be used for projects that have direct relationships between time and resources. a) PERT b) Gantt c) CPM d) NPV e) Flowchart
c (Medium) Response: See page 235
8. Most companies would like to obtain the advantages derived from both centralized and decentralized organizational paradigms. What type of IT governance model would best help them to achieve this goal? a) Distributed Control b) Decentralized c) Federalism d) Joint-Control e) Centralized
c (Medium) Response: See pages 193-194
12. Of the following list, the newest sourcing option for today's IT organizations is: a) Outsourcing b) Insourcing c) Farshoring d) Cloud computing e) Onshoring
d (Easy) Response: See page 216
16. iCloud is an example of which one of the following? a) Offshoring b) Insourcing c) Farshoring d) Cloud computing e) Backsourcing
d (Easy) Response: See page 216
17. This is when an IS organization uses contractor services, or even builds its own data center, in a distant land. a) Cloud computing b) Insourcing c) Inshoring d) Offshoring e) Nearsourcing
d (Easy) Response: See page 219
23. 67% of projects fail, if you define success by: a) Being on or under budget b) Meeting performance criteria c) Being completed on time d) All of the above e) None of the above
d (Easy) Response: See page 229
21. If someone wants a system cheaply, quickly, and with a large scope, we can conclude: a) That desire represents the three sides of the Project Triangle b) This is normally not possible: you can usually only achieve two of those three objectives at a time. c) Management might be providing an impossible goal. d) All of the above e) None of the above
d (Easy) Response: See page 232
18. Increasing project success requires gaining commitment from stakeholders. All of the following help to sustain that commitment for the life of the project EXCEPT: a) Continually reminding stakeholders of the project benefits b) Placing key stakeholders on the project team c) Encouraging the project sponsor to provide public support for the project d) Surprising the stakeholders by keeping the system's workings a secret e) Assigning the right leader to be the project sponsor
d (Easy) Response: See page 251
21. This IT governance archetype consists of C-level executives and at least one other business group. An IT executive may be an additional participant. a) Business monarchy b) IT monarchy c) Feudal d) Federal e) IT Duopoly
d (Hard) Response: See page 197
22. A steering committee works especially well with this particular IT governance archetype. a) Business monarchy b) IT monarchy c) Feudal d) Federal e) IT Duopoly
d (Hard) Response: See page 199
5. A company that seeks an IT portfolio that lowers costs as the primary business objective will be more likely to increase spending on ___________ because these applications can help automate processes. a) strategic systems b) infrastructure c) informational systems d) transactional systems e) social media
d (Hard) Response: See pages 175-176
3. According to the research by Peter Weill, a firm that boosts investments in infrastructure is typical of those firms with a focus on (1) _______ and a firm that boosts investments in transaction systems is typical of those firms with a focus on (2) ______ a) (1) transactions (2) connections b) (1) savings (2) expansion c) (1) cost (2) ability d) (1) agility (2) cost e) (1) ability (2) agility
d (Medium) Response: See page 176
26. All of the following are methods used to value an IT investment EXCEPT: a) Payback analysis b) ROI c) NPV d) CTO e) IRR
d (Medium) Response: See page 177
21. Which dimension of the balanced scorecard answers the question "How do we look to shareholders?" a) Customer perspective b) Innovating and learning perspective c) Internal business perspective d) Financial perspective e) Supplier perspective
d (Medium) Response: See page 178
10. Scorecards provide a summary of information gathered over a period of time. Another common IT monitoring tool is the _____________. a) baseline b) metrics c) portfolio d) dashboard e) monitor
d (Medium) Response: See page 180
27. An IT dashboard provides: a) Summary information gathered over a period of time. b) Statistics on system usage. c) A distraction from where more IT attention should be focused. d) Current and critical measurements for the organization in an easy to read manner. e) A snapshot of a firm's financial data at any given point in time.
d (Medium) Response: See page 180
5. After Intel faced strong shifts in technologies, such as cloud services, social networking, mobile devices, etc., Intel realized that it needed to establish better governance, creating a _______________. a) Employee boards b) Customer boards c) Security committees d) Information governance boards e) Higher control framework
d (Medium) Response: See page 192
11. ________ of the 1980's allowed computing power to spread and gave rise to a decentralized approach to IT governance. a) Servers b) Mainframes c) Networks d) PCs e) The WWW
d (Medium) Response: See page 193
4. All of the following are mechanisms that can be created to ensure good IT governance EXCEPT: a) Policies b) Review boards c) Steering Committees d) Consultants e) IT Governance Council
d (Medium) Response: See page 195
15. The archetype that is represented by a group of business executives that might or might not include the CIO is: a) IT monarchy b) Feudal c) Federal d) Business monarchy e) IT duopoly
d (Medium) Response: See page 197
15. The functions of an entire data center can be replaced by which one of the following cloud computing providers? a) Software as a Service (SaaS) b) Application Service Provider (ASP) c) Platform as a Service (PaaS) d) Infrastructure as a Service (IaaS) e) Outsourcing as a Service (OaaS)
d (Medium) Response: See page 218
20.To provide potential customers an idea of an outsourcing provider's development capabilities, the Software Engineering Institute developed this rating. a) Tier * b) IaaS c) ISO9001 d) CMM e) Six Sigma
d (Medium) Response: See page 221
15. This development methodology is more traditional and more structured than other approaches. a) Agile programming b) Prototyping c) Open source deployment d) Software development life cycle (SDLC) e) Critical path method (CPM)
d (Medium) Response: See page 240
13. What type of software is released under a license approved by the Open Source Initiative (OSI)? a) System Architecture Software (SAS) b) Open System Software (OSS) c) Shareware Software (SS) d) Open Source Software (OSS) e) Source System Software (SSS)
d (Medium) Response: See page 246
11. All of the following are risks associated with IS outsourcing EXCEPT: a) Loss of control b) Dependency on outsourcing providers c) Inadequate adaption of newer technologies d) Requiring more training of in-house staff e) Potential loss of competitive secrets
d (Medium) Response: See pages 212-213
7. This type of organization management is where IT controls most of its IT infrastructure in one location. a) Distributed IS organization b) Decentralized IS organization c) Federalism d) Joint-Control IS organization e) Centralized IS organization
e (Easy) Response: See page 193
21.Which of the following makes countries attractive for offshoring? a) English language proficiency. b) Political stability. c) Economic stability. d) Countries with friendly relationships. e) All of the above.
e (Easy) Response: See page 221
12. What does PMO stand for? a) Project Maintenance Office b) Project Mission and Objectives c) Product Maintenance Office d) Project Mission Office e) Project Management Office
e (Easy) Response: See page 232
2. Which of the following should a manager expect from the IS organization? a) Promoting enterprise security. b) Participating in setting and implementing strategic direction. c) Innovating current processes. d) Managing data, information and knowledge e) All of the above
e (Hard) Response: See page 169
17. IT decisions have been categorized by Peter Weill and Jeanne Ross. These categories include all of the following EXCEPT: a) IT principles b) IT architecture c) IT infrastructure d) Business application needs e) IT security
e (Hard) Response: See page 195
18. The decision about approval and justification of new technologies would fall into which one of the five major IT decision categories? a) IT principles b) IT architecture c) IT infrastructure d) Business application needs e) IT investment and prioritization
e (Hard) Response: See page 196
14. IT governance has two major components: the assignment of decision-making authority and responsibility, and the __________________________. a) cost considerations b) decision rights c) business plan d) capability maturity model e) decision-making mechanisms
e (Hard) Response: See page 199
19. All of the following are indications that the project is successful EXCEPT: a) Customers receive a significant benefit from the project. b) The project meets its return on investment goal. c) The project meets the established time and budget criteria. d) The project prepares the organization for future success and growth. e) The project profits are high and last for a very short time period.
e (Hard) Response: See page 252
22. All of the following are new roles found in an IT organization today EXCEPT: a) Community manager b) Chief Social Media Officer c) Chief Knowledge Officer d) Chief Privacy Officer e) Chief administrative assistant
e (Medium) Response: See page 172
14. Building a business case for an IT investment: a) Allows management to establish priorities for investing in different projects. b) Helps gain commitment for the IT investment from business managers. c) Creates a basis for monitoring the investment. d) Identifies the benefits of the investment. e) All of the above.
e (Medium) Response: See page 173
12. Denise works for a company where the IT department charges her department for actual usage of a SharePoint server, determining how often users log in and how much storage space her department consumes. What type of IT funding model is the company deploying? a) Allocation method b) Corporate budget method c) Usage method d) Distributed method e) Chargeback method
e (Medium) Response: See page 182-183
16. The archetype that is represented by IT executives and one other group is: a) IT monarchy b) Feudal c) Federal d) Business monarchy e) IT duopoly
e (Medium) Response: See page 197
3.If a company decides to make and develop IS, they are using this type of sourcing. a) Outsourcing b) Cloud computing c) Inshoring d) Offshoring e) Insourcing
e (Medium) Response: See page 210
5. The most common driver for insourcing is to: a) Keep employees loyal to the company. b) Make a system that cannot be bought. c) Develop internal skill sets. d) Maintain control over the development of the system e) Keep core competencies in-house.
e (Medium) Response: See page 210
18. IT organizations will outsource which one of the following IT activities? a) Programming b) IT transactions c) Knowledge-based business processes d) Data storage e) All of the above.
e (Medium) Response: See page 215
14. Which one of the following software products is NOT an open source software release? a) PERL b) Open Office c) Linux d) Mozilla e) Microsoft Office
e (Medium) Response: See page 247
6. This method of IT funding is the most equitable, as the costs associated with IT are based on use. However, it can be difficult and tedious to calculate the usage costs. a) Allocation b) Corporate budgeting c) Usage d) Distributed e) Chargeback
e (Medium) Response: See pages 182-183
2. The Sarbanes-Oxley Act of 2002 was primarily aimed at which functional unit of a corporation? a) Marketing b) Production c) Sales d) IT e) Finance
e (Medium) Response: See pages 200-201
30. Four asset classes of IT investments include: a) Financial Systems b) Marketing systems c) Control systems d) all the above e) none of the above
e (Medium) Response: see page 175
4.The purchase of a good or service that was previously provided internally, or that could be provided internally, is called: a) Outsourcing b) Insourcing c) Inshoring d) Offshoring e) Nearsourcing
a (Easy) Response: See page 211
23. What is it called when a company brings IS capabilities that were previously outsourced back in-house? a) Backsourcing b) Insourcing c) Software as a Service d) Nearshoring e) Cloud computing
a (Easy) Response: See page 223
4. This is a temporary endeavor undertaken to create a unique product, service or result. a) project b) event c) scope d) requirement e) system
a (Easy) Response: See page 230
24. Valuing an IT investment is difficult because of many reasons. One of the reasons is: a) Many IT investments are necessities and payback is hard to calculate. b) Increased customer satisfaction is not valued enough to justify costs. c) IT investments often add no real business value. d) IT managers do not see the need to value an investment whose payback period is relatively short. e) IT is seen as "a necessary evil".
a (Hard) Response: See page 176
3. To maintain balance in a project with a fixed budget and a well-defined scope, a project team will require flexibility ________. a) with the deadline. b) in spending. c) with project quality. d) with assumed risks. e) in achieving the goals of the business case.
a (Hard) Response: See page 232
8. Activity based costing _____________ a) groups costs into meaningful buckets that are then distributed based on the activity or product they support. b) is useful for allocating small project work. c) charges all costs to "cost centers". d) considers only initial capital investments. e) calculates ongoing maintenance costs.
a (Hard) Response: See pages 184-185
1. This is a plan designed to counter a manmade or natural disaster that could cripple an enterprise. a) Business Continuity Plan b) Disaster Recovery Plan c) Business Disaster Plan d) Disaster Business Case e) Business-IT Maturity Model
a (Medium) Response: See page 169
20. Which dimension of the balanced scorecard answers the question "How do customers see us?" a) Customer perspective b) Innovating and learning perspective c) Internal business perspective d) Financial perspective e) Supplier perspective
a (Medium) Response: See page 178
11. Joe works for a company where the IT department charges him for the number of CRM login accounts that are in his department. What type of IT funding model is his company deploying? a) Allocation b) Corporate budgeting c) Usage d) TCO e) Chargeback
a (Medium) Response: See page 183
22. This is a type of captive center that performs core business processes for a parent company and outsources noncore work offshore. a) Hybrid Captive b) Shared Captive c) Divest Captive d) Terminated Captive e) Core Captive
a (Medium) Response: See page 211
13. Ensuring a cultural fit with an outsourcing provider is especially important when an organization is considering which one of the following? a) Offshoring b) Insourcing c) Onshoring d) Cloud computing e) Selective outsourcing
a (Medium) Response: See page 219
5. Scope may be divided into product scope and __________ scope. a) project b) cost c) time d) time e) sequence
a (Medium) Response: See page 231
6. The project triangle includes 3 sides - time, scope and ________. a) cost b) product c) event d) quality e) requirements
a (Medium) Response: See page 231
16. Open source software __________. a) is free. b) requires an organization pay a per user fee. c) is costly. d) is not allowed to be modified. e) is provided by software vendors like Microsoft and SAP.
a (Medium) Response: See page 246
19. In the early days of IT, the CIO would report to the ____ as IT was seen as a way to control costs. As technology has become more strategic and able to deliver a competitive advantage, CIOs now report directly to the ____. a) CFO; CEO b) CEO; CFO c) CFO; COO d) COO; CEO e) CEO; CTO
a (Medium) Response: See pages 171-172
