CH 9
74) When making the case for an IS investment, it is undesirable to translate all potential benefits into monetary terms.
Answer: FALSE
75) Steering committees are ill-equipped to handle larger, riskier projects.
Answer: FALSE
78) The first phase of the systems development lifecycle is systems design.
Answer: FALSE
80) Strategic alignment considers the number of individuals and the length of time needed to complete a project.
Answer: FALSE
86) Purchasing an existing system from an outside vendor is referred to as outsourcing.
Answer: FALSE
87) An RFP is sent to buyers who might potentially be interested in buying hardware and/or software for the system.
Answer: FALSE
90) In a basic relationship, the buyer and the supplier set preferences and prices to the benefit of each other.
Answer: FALSE
69) Business case arguments based on faith do not require hard data based on system costs.
Answer: TRUE
73) A net-present-value analysis is an analysis of the relevant cash flow streams associated with the system at the organization's discount rate.
Answer: TRUE
77) Traditionally, the most common option for packaged software was commercial off-the-shelf software.
Answer: TRUE
70) The total cost of ownership is focused on understanding not only the total cost of acquisition but also all costs associated with ongoing use and maintenance of a system.
Answer: TRUE
72) A break-even analysis is a type of cost-benefit analysis to identify at what point tangible benefits equal tangible costs.
Answer: TRUE
76) Proxy variables can be used to measure changes in terms of their perceived value to the organization.
Answer: TRUE
79) Requirements collection is the process of gathering and organizing information to understand how a proposed information system should function.
Answer: TRUE
82) Data flows represent the movement of data through an organization or within an information system.
Answer: TRUE
83) Processing logic represents the way in which data are transformed.
Answer: TRUE
84) System conversion is the process of decommissioning the current way of doing things and installing the new system in the organization.
Answer: TRUE
88) Systems benchmarking is the use of standardized performance tests to facilitate comparison between systems.
Answer: TRUE
68) The biggest increases in productivity result from increased system efficiency rather than system effectiveness.
Answer: FALSE
71) Salaries and benefits for personnel managing a system are non-recurring costs.
Answer: FALSE
10) Which of the following is an example of a business case argument based on fear? A) If we do not implement this system, our competitors could gain a significant advantage over us. B) This system has the potential to reduce required effort by 40 percent. C) Using this system will help our employees serve customers more efficiently. D) The system can help us meet both individual as well as organizational goals. E) The new system is user-friendly and can be implemented almost immediately.
Answer: A
13) Which of the following is an example of an intangible cost for a system? A) cost of losing customers B) employee salaries C) cost of installation and maintenance D) cost of employee recruitment and retention E) customer support costs
Answer: A
19) A break-even analysis ________. A) identifies at what point tangible benefits equal tangible costs B) analyzes the relevant cash flow streams associated with the system at the organization's discount rate C) refers to the discounted sum, or present value, of a stream of costs associated with a project or proposal D) attempts to summarize the overall value of money for a project or proposal E) is the rate of return used by an organization to compute the present value of future cash flows
Answer: A
21) ________ are alternative measures of outcomes that can help clarify what the impact of a change will be on a firm. A) Proxy variables B) Pseudocodes C) Patches D) Prototypes E) Protocols
Answer: A
29) ________ is a group meeting-based process for requirements collection. A) Joint application design B) Computer-aided design C) Human-computer interface D) Reverse engineering E) Total ownership
Answer: A
3) Which of the following is true of system effectiveness? A) It is the extent to which a system enables the firm to accomplish goals well. B) It is the extent to which a system allows a firm to plan its tasks. C) It is the extent to which a system enables the firm to do things faster, at lower cost. D) It is the extent to which a system allows a firm to cut operational costs. E) It is the extent to which a system enables people to accomplish tasks with relatively little time and effort.
Answer: A
34) A ________ is a business document containing some predefined data, often including some areas where additional data can be filled in. A) form B) script C) sheet D) report E) module
Answer: A
38) Which of the following best describes developmental testing? A) testing the correctness of individual modules and the integration of multiple modules B) testing the system to see if it meets design requirements C) testing of the capabilities of the system in the user environment with actual data D) testing the system as a whole to see if it performs adequately E) testing the system in an experimental context using sample data
Answer: A
45) Programming is the process of ________. A) transforming the system design into a working computer system B) testing the correctness of individual modules of a system C) testing the integration of multiple modules of a system D) transforming raw data inputs into new or modified information E) gathering and organizing information from users and managers
Answer: A
51) The process of making changes to an information system to evolve its functionality, to accommodate changing business needs, or to migrate it to a different operating environment is known as ________. A) adaptive maintenance B) perfective maintenance C) preventive maintenance D) corrective maintenance E) predictive maintenance
Answer: A
61) 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? A) systems benchmarking B) alpha testing C) data modeling D) beta testing E) prototyping
Answer: A
63) A(n) ________ license refers to a license primarily used for downloaded software that requires computer users to choose "I accept" before installing the software. A) click- wrap B) shareware C) enterprise D) volume E) implied
Answer: A
7) Business case arguments based on ________ focus on beliefs about organizational strategy, competitive advantage, industry forces, customer perceptions, market share, and so on. A) faith B) fear C) facts D) fiction E) fallacy
Answer: A
1) Which of the following statements best describes the productivity paradox for technology investment? A) The productivity of any technology is directly proportional to the investment in that technology. B) While it is easy to quantify the costs associated with developing an information system, it is often difficult to quantify tangible productivity gains from its use. C) As investment in technology increases, productivity decreases steadily. D) While it is easy to identify and quantify the intangible benefits of an information system, it is not easy to quantify the tangible benefits. E) The productivity of an information system is in no way related to the investment in the technology.
Answer: B
14) BelAir Tech is conducting a cost-benefit analysis for its IS department. In this, the salary of an employee is an example of a(n) ________. A) intangible and tangible cost B) tangible and recurring cost C) intangible and recurring cost D) tangible and non-recurring cost E) recurring and non-recurring cost
Answer: B
20) A method for deciding among different IS investments or when considering alternative designs for a given system is ________. A) transactional analysis B) weighted multicriteria analysis C) finite element analysis D) independent component analysis E) link quality analysis
Answer: B
25) During the first phase of the systems development life cycle, organizations ________. A) transform the system design into a working information system B) identify, plan, and select a development project from all possible projects that could be performed C) gain a thorough understanding of an organization's current way of doing things in the area for which the new information system will be constructed D) elaborate on the details of the chosen approach and design the system E) decommission the current way of doing things and install the new system in the organization
Answer: B
27) ________ is the process of gathering and organizing information from users, managers, customers, business processes, and documents to understand how a proposed information system should function. A) Data modeling B) Requirements collection C) Beta testing D) End-user development E) External acquisition
Answer: B
31) ________ represents the way in which data are transformed. A) Data parallelism B) Processing logic C) Data streaming D) Process control E) Transaction processing
Answer: B
41) ________ testing involves testing of the capabilities of the system in the user environment with actual data. A) Developmental B) Beta C) Evolutionary D) Alpha E) Comparative
Answer: B
43) ________ testing is performed by actual users of the system. A) Developmental B) Beta C) Evolutionary D) Alpha E) Comparative
Answer: B
52) Which of the following types of system maintenance involves making enhancements to improve processing performance or interface usability? A) adaptive maintenance B) perfective maintenance C) preventive maintenance D) corrective maintenance E) predictive maintenance
Answer: B
54) 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? A) Jason notices a faulty component in the system and modifies the component. B) Justin works on the system to make the user interface more user-friendly. C) Sara knows that the company is migrating to a different operating environment next month, and makes changes to the system. D) Dylan predicts that the company's old system may fail under new demands, and takes steps to avert this. E) Kiera detects a fault in the coding, which is hampering system performance, and rectifies it.
Answer: B
60) ________ is the use of standardized performance tests to facilitate comparison between systems. A) Beta testing B) Systems benchmarking C) Data modeling D) Systems prototyping E) Alpha testing
Answer: B
64) An enterprise license is also known as a(n) ________ license. A) shrink-wrap B) volume C) click-wrap D) shareware E) implied
Answer: B
12) Which of the following is an example of a recurring cost associated with an information system? A) installation charges B) purchase of office space C) employee salaries D) technology purchases E) cost of system acquisition
Answer: C
15) Which of the following is true for tangible costs? A) They are only recurring costs. B) They are always non-recurring costs. C) They are relatively easy to quantify. D) They are the same as intangible benefits. E) They are difficult to qualify
Answer: C
16) BelAir Tech implements a new information system and sees a 5 percent increase in monthly sales after implementation. This is a(n) ________ of the system. A) intangible benefit B) tangible cost C) tangible benefit D) recurring cost E) non-recurring cost
Answer: C
17) "Increased customer reach of the new Web-based system will result in at least a modest increase in sales." This statement represents a(n) ________ for the company. A) recurring cost B) intangible cost C) tangible benefit D) non-recurring cost E) intangible benefit
Answer: C
22) Which of the following is the main advantage of customizable software over off-the-shelf software? A) cost effectiveness B) ease of procurement C) problem specificity D) lower risks E) user-friendliness
Answer: C
26) Requirements collection takes place during the ________ phase of the systems development life cycle. A) systems design B) systems implementation C) systems analysis D) systems maintenance E) systems operation
Answer: C
28) Which of the following steps takes place in an organization during both in-house systems development as well as external acquisition? A) vendor selection B) systems selection C) systems analysis D) development of an RFP E) proposal evaluation
Answer: C
36) The processing and logic operations of an information system refer(s) to ________. A) the procedures for entering data into a system B) the transfer of data across system components C) the procedures that transform raw data inputs into new or modified information D) the multiple points of contact between a system and users E) the process of transforming the system design into a working computer system
Answer: C
40) Jason has just made some changes to the information system at BelAir Tech and wants to check if the system is working correctly. He wants to conduct a beta test of the system. Which of the following should he do to achieve this? A) He should ask other programmers to check the modules he changed. B) He should check to see if the changed components are integrated well into the system. C) He should ask users of the system to test it using actual data. D) He should ask the software tester to test if the changed system meets design requirements. E) He should test the changed modules for correctness.
Answer: C
42) Developmental testing of an information system is performed by ________. A) software testers B) actual users C) programmers D) systems analysts E) project managers
Answer: C
47) Which of the following is true for patch management? A) It helps in testing the correctness of individual modules and the integration of multiple modules of a system. B) It helps in the process of transforming the system design into a working computer system. C) It helps in performing corrective or preventive maintenance for a system. D) It helps in decommissioning the current system and installing the new system in the organization. E) It helps to develop system documentation that details the inner workings of the system to ease future maintenance.
Answer: C
53) Preventive maintenance of a system involves ________. A) making changes to an information system to repair flaws in the design B) making enhancements to improve processing performance or interface usability C) making changes to a system to reduce the chance of future system failure D) adding desired but not necessarily required system features E) making changes to an information system to accommodate changing business needs
Answer: C
55) BelAir Tech has a five-member team in charge of 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 adaptive maintenance? A) Jason notices a faulty component in the system and modifies the component. B) Justin works on the system to make the user interface more user-friendly. C) Sara knows that the company is migrating to a new operating environment next month, and makes the appropriate changes to the system. D) Dylan predicts that the company's old system may fail under new demands, and takes steps to avert this. E) Kiera detects a fault in the coding, which is hampering system performance, and rectifies it.
Answer: C
6) B&Z Inc. implemented a new information system two months ago but there have been no concrete increases in productivity as a result of the system. A similar system has been in place at the company headquarters for the past two years, and this system has resulted in significant, quantifiable benefits. Which of the following reasons is the most likely explanation for the lack of results? A) The benefits of the new information system are difficult to pinpoint because the firm is considering the wrong indicators. B) The new system is being used to redistribute market share rather than make the whole market bigger. C) It can take years from the first implementation of this new system before the magnitude of benefits is felt by the organization. D) The benefits of the new information system are difficult to pinpoint because the firm is not familiar with the working of the system. E) The new system may be beneficial for individual firms but not for a particular industry or the economy as a whole.
Answer: C
62) ________ licenses are activated as soon as the packaging of the software has been removed. A) Click-wrap B) Shareware C) Shrink-wrap D) Volume E) Implied
Answer: C
67) Which of the following is an example of a basic relationship between an outsourcing vendor and client? A) STS Systems usually offers BelAir a discount on every purchase it makes. B) BelAir sets its system preferences according to STS products. C) BelAir buys a system from the vendor who offers the cheapest prices. D) STS has a direct stake in the success of BelAir's performance. E) STS modifies its product prices according to BelAir's requirements.
Answer: C
9) Business case arguments based on data, quantitative analysis, and/or indisputable factors are known as arguments based on ________. A) fads B) faith C) facts D) fear E) fiction
Answer: C
11) The total cost of ownership of a system refers to ________. A) all non-recurring costs associated with a system B) all costs associated with ongoing use and maintenance of a system C) the total cost of acquisition of a particular system D) the total cost of acquisition and all costs associated with use and maintenance of a system E) the recurring costs associated with a system
Answer: D
2) System efficiency is the extent to which a system ________. A) allows firms to reach their operational targets B) allows people to plan tasks that are achievable C) enables people to accomplish goals or tasks well D) enables people to do things faster or at lower cost E) allows employees to reduce the risks associated with tasks
Answer: D
23) The first phase of the systems development life cycle is ________. A) systems design B) systems implementation C) systems analysis D) systems planning and selection E) systems operation
Answer: D
30) ________ represent(s) the movement of data through an organization or within an information system. A) Data entities B) Data flux C) Data attributes D) Data flows E) Data modeling
Answer: D
33) In an information system, a ________ is the point of contact between a system and users. A) biointerface B) network interface C) point-to-point link D) human-computer interface E) data link
Answer: D
35) A ________ is a business document containing only predefined data for online viewing or printing. A) form B) script C) sheet D) report E) module
Answer: D
37) Software programming and testing takes place during the ________ stage of the systems development process. A) systems planning B) systems analysis C) systems maintenance D) systems implementation E) systems design
Answer: D
39) ________ testing is testing of the overall system to see whether it meets design requirements. A) Developmental B) Beta C) Evolutionary D) Alpha E) Comparative
Answer: D
44) Which of the following can be considered beta testing? A) A programmer at Linus Systems checks the integration of multiple modules of an information system. B) Software testers compare the finished system against user requirements to see if it satisfies all necessary criteria. C) Taro Inc. checks the correctness of the modules of its new information system. D) System users at URP feed data into a new information system to test its capability. E) MNP Inc. checks the system to ensure that it meets all the necessary design requirements.
Answer: D
48) The final phase of the systems development life cycle is ________. A) systems design B) systems implementation C) systems analysis D) systems maintenance E) systems operation
Answer: D
49) ________ use the Internet to check the software vendor's Web site for available fixes for problems. The application downloads and installs these in order to fix software flaws. A) Alpha testing systems B) Proxy variables C) Benchmarking systems D) Patch management systems E) Workarounds
Answer: D
50) The process of making changes to an information system to repair flaws in design, coding, or implementation is known as ________. A) adaptive maintenance B) perfective maintenance C) preventive maintenance D) corrective maintenance E) predictive maintenance
Answer: D
56) Which of the following is true for prototyping? A) It is a part of the fourth stage of the systems development life cycle. B) It is synonymous with adaptive maintenance of a system. C) It does not consider user requirements for the system. D) It uses a trial-and-error approach for discovering how a system should operate. E) It is also known as end-user development.
Answer: D
58) 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? A) systems planning B) systems analysis C) vendor selection D) proposal evaluation E) system installation
Answer: D
65) Which of the following is true of Software as a Service? A) It is not scalable in response to large increases in demand. B) It involves fixed monthly and yearly costs for the services. C) It requires the installation of specialized interfaces at the client end. D) It allows clients to access services on an as-needed basis. E) It requires an organization to maintain and develop the software.
Answer: D
66) BelAir Tech has developed and run its own information system for the past ten years. However, the company has now decided to outsource its IS function to a service provider. Which of the following, if true, will strengthen BelAir's decision? A) BelAir's IS team developed the existing system from scratch and has ironed out most faults over the years. B) The service provider is highly recommended by its other clients. C) Most BelAir employees are familiar with the current information system. D) BelAir has seen a fall in company revenue over the last year. E) Outsourcing its IS function did not benefit BelAir's competitor, Amis Systems.
Answer: D
8) Business case arguments based on fear are dependent on ________. A) the belief that implementing the new information system can have significant positive consequences for the firm B) beliefs about organizational strategy, competitive advantage, industry forces, customer perceptions, market share, and so on C) data, quantitative analysis, and/or indisputable factors D) the notion that if the system is not implemented, the firm will lose out to the competition or go out of business E) the results of a qualitative analysis of employee responses to the new information system
Answer: D
18) Which of the following is an example of an intangible benefit for a firm? A) lower transport and operational costs B) a significant increase in sales C) a reduction in operational errors D) cost reductions as compared to previous data E) improved customer perceptions of the firm
Answer: E
24) After systems analysis, the next phase in the systems development life cycle is ________. A) systems implementation B) systems operation C) systems planning D) systems maintenance E) systems design
Answer: E
32) Processing logic is often expressed in ________, which is independent of the actual programming language being used. A) semantics encoding B) prefix code C) source code D) semiotics E) pseudocode
Answer: E
4) Which of the following scenarios demonstrates system efficiency? A) Barker's new information system allowed the company to reach its monthly targets. B) Barker's was able to easily reach its sales goals through the use of its information system. C) Barker's new information system allowed the company to set achievable targets. D) Barker's new information system helped employees to achieve their individual goals alongside the company's goals. E) The new information system at Barker's helped employees work faster, with less effort.
Answer: E
46) ________ is the process of decommissioning the current way of doing things and installing the new system in the organization. A) Reverse engineering B) System programming C) Adaptive maintenance D) Patch management E) System conversion
Answer: E
5) BelAir Tech replaced its outdated information system with a newer version. As a result, its employees reported a significant increase in work speed. Which of the following is most similar to BelAir's situation? A) Barker's new information system allowed the company to reach its monthly sales target easily. B) Twining Co. targeted a 5 percent increase in customer acquisition and achieved this with the new information system. C) Employees at Niven Ltd. felt that customer satisfaction increased after the new information system was implemented. D) Castle's new information system helped employees to achieve their individual goals alongside the company's goals. E) At Sterling Inc. the average number of application forms processed in an hour rose from 4 to 6 as a result of the new system.
Answer: E
57) BelAir Tech needs a new information system to manage increasing customer orders and changing demands. The company's five-member IS team is competent and capable of developing a new system, but BelAir decides against developing a system in-house. Which of the following, if true, would most weaken BelAir's decision? A) The company's preferred vendor is willing to provide a basic information system at a reduced rate. B) The company's IS team is short-staffed and is finding it difficult to cope with increased work. C) The costs of outsourcing systems development are greater than those of adapting an off-the-shelf system. D) The company's IS department has the qualifications to develop the new system. E) The company's requirements for the new system are very specialized.
Answer: E
59) Which of the following statements is true of a request for proposal? A) It is a form sent by vendors to potential customers. B) It requests vendors to provide a complete list of all their products. C) It invites customers to bid for a product offered by a vendor. D) It is a summary of the vendor's offerings to a client. E) It is a list of user requirements sent to prospective vendors.
Answer: E
81) In an entity-relationship diagram, each data entity can have only one attribute that describes it.
Answer: FALSE
85) Corrective maintenance involves making changes to an information system to evolve its functionality, to accommodate changing business needs, or to migrate it to a different operating environment.
Answer: FALSE
89) Public domain software severely restricts access to the source code and gives users no rights to copy or modify the software.
Answer: FALSE