This document contains multiple choice and true/false questions about management information systems. The questions cover topics such as the history of computers, Moore's law, MIS models, artificial intelligence, decision support systems, ERP software, strategic planning levels, and functions of management. The document tests knowledge of concepts addressed in the 9th edition of a management information systems textbook.

1. Management Information Systems, 9th edition
Questions And Answers
Multiple Choice #1
1. Which computer was installed at the U.S. Census Bureau in 1951?
a) MARK I
b) ENIAC
c) UNIVAC
 UNIVAC I
2. The computer company that pioneered the microcomputer was:
 Apple
a) Hewlett Packard.
b) IBM.
c) Dell.
3. Which statement is false concerning Moore's Law?
a) The term was named for Gordon Moore.
 Gordon Moore was one of the founders of IBM.
b) In the 1960s the storage density of integrated circuits on a silicon chip doubled
about every year.
c) Today, when we speak of Moore's Law we refer to the doubling of computer
power every 18 months.
4. Which of the following is not part of the physical system of the firm?
a) Money
 Data
b) Personnel
c) Machines
5. The type of system that would not interact with customers or managers or
anyone else is referred to as a(n):
a) open system.
b) open-loop system.
 closed system.
c) closed-loop system.
6. In an MIS model, which of the following components does information not flow
through?
a) Database
 Information processor
b) Report writing software
c) Report writing software
7. The activity of providing machines as computers with the ability to display
behavior similar to that of an intelligent human is referred to as:
 artificial intelligence.
a) group decision support systems.
b) management information systems.
c) decision support systems.
8. The system that allows managers to use technology to self-manage some of the
clerical tasks that supported a manager in the 1960s is referred to as:
a) decision support systems.
b) management information systems.
c) artificial intelligence.
 personal productivity systems.
9. Which of the following is not a reason for the tremendous growth in ERP
software during the late 1990s?
 The ease in achieving enterprise-wide systems
a) The Y2K problem
b) The flurry of corporate merger activity
1

2. c) The "follow the leader" competitive strategy
10. Which management level includes the president and vice-presidents of the firm?
 Strategic planning level
a) Management control level
b) Tactical planning level
c) Operational control level
11. Which of the following is not a traditional business area of the firm?
a) Marketing
b) Manufacturing
c) Finance
 Production
12. Which management function do managers at the operational control level spend
the most time on?
a) Planning
b) Organizing
 Directing
c) Staffing
13. The act of selecting from alternative courses of action is known as:
a) problem solving.
b) a problem.
c) a solution.
 decision making.
14. According to Simon, which problem- solving activity is defined as assessing
past choices?
a) Intelligence
b) Choice
 Review
c) Evaluation
15. Which technology company has developed a keyboard made only of light?
a) Dell
b) Intel
 Canesta, Inc.
c) Logitech
True or False #1
1. IBM introduced the Personal Computer in 1982.
 True
 False
2. The term personal computer is used as well as microcomputer to describe the
small, relatively inexpensive, and powerful systems used for both business and
personal applications.
 True
 False
3. The CPU is controlled by an operating system and manages the input and
output devices, data storage devices, and operations on the data.
 True
 False
4. CD-ROMs, floppy drives, and hard disks are like random access memory in that
they are permanent data storage.
 True
 False
5. A computer that uses the public telephone system must have a modem between
the public telephone service and the computer.
 True
 False
6. The physical system of the firm consists of tangible resources such as
information.
2

3.  True
 False
7. Most of the information produced by the transaction processing system is
intended for use by persons inside the firm.
 True
 False
8. One problem with early management information systems is that the managers
had trouble articulating their needs.
 True
 False
9. Office clerks use technology to support the clerical tasks for managers.
 True
 False
10. The Y2K problem helped spur the growth of ERP software during the late 1990s.
 True
 False
11. The first users of computer output were accounting managers.
 True
 False
12. The management level for middle-level managers has been called the
management control level because it is their responsibility to put plans into
action and to ensure that goals are met.
 True
 False
13. The act of selecting from alternative courses of action is called decision making.
 True
 False
14. According to Mintzberg's informational roles, the manager makes contacts with
persons outside the manager's own unit for the purpose of attending to
business matters.
 True
 False
15. The future of information technology will be driven by the reduced cost and
increased power of both computers and communications.
 True
 False
Multiple Choice #2
1. Which of the following is not a conceptual resource?
a) Data
b) Decisions
Personnel
c) Information
2. 2.Which environmental element supplies the materials, machines, services,
people, and information that are used by the firm to produce its products and
services?
a)Customers
Vendors
b)Competitors
c)Labor unions
3. 3.According to Porter, how does a firm create value?
By creating value activities.
a)By creating a value chain.
b)By creating margin.
c)By creating a value system.
4. Which of the following is not a primary value activity?
a)Operations
Procurement
b)Marketing & sales
3

4. c)Service
5. Which is not an essential ingredient of each value activity?
a)Purchased inputs
b)Human resources
c)Technology
Outputs
6. When the information system directly interacts with the processes, it is referred
to as:
a)strategic advantage.
operational advantage.
b)tactical advantage.
c)mid-level advantage.
7. What type of firm operates across products, markets, nations, and cultures?
Multinational corporation
a)Global corporation
b)Strategic corporation
c)Enterprise
8. What type of firm is an open system that seeks to minimize the uncertainty that
its environment imposes?
a)Enterprise
b)Global corporation
MNC
c)Strategic corporation
9. Which of the following is not an information resource?
a)Information specialists
b)Users
Materials
c)Facilities
10. When information does not have to be 100% accurate, which dimension of
information is in use?
a)Relevancy
b)Correctness
Accuracy
c)Completeness
11. Which statement is false regarding legacy systems?
a)Data captured by legacy systems produces primarily information describing what
happened in the past.
b)Data captured by legacy systems is still valuable.
Legacy data cannot be converted to new technologies.
c)Some legacy data may only exist as paper printouts.
12. The standard bit mapped image format for Windows that can require large
amounts of storage is:
a)JPG.
b)GIF.
BMP.
c)WMF.
13. During the past few years which business area has probably devoted more
attention to strategic planning than have most of the other business areas?
Information services
a)Marketing
b)Finance
c)Human resources
14. When the firm seeks to meet the needs of its worldwide customers with
standardized products, it is referred to as:
centralized control strategy.
a)decentralized control strategy.
b)distributed control strategy.
c)centralized expertise strategy.
4

5. 15. When the parent and subsidiaries work together in formulating strategies and
operating policies, as well as in coordinating the logistics of getting the
products to the right markets, it is referred to as:
a)centralized control strategy.
centralized control and distributed expertise strategy.
b)decentralized control strategy.
c)distributed control strategy.
True or False #2
1.Labor unions are the organizations of both skilled and unskilled workers for
certain trades and industries.
 True
 False
2. Shareholders are the persons who invest money in the firm and
represent the ultimate owners of the firm.
 True
 False
3. The location is the geographic area where the firm performs its
operations.
 True
 False
4. Not all resources flow between the firm and all environmental
elements.
 True
 False
5. Michael Porter believes that firms achieve value by creating a
value chain.
 True
 False
6. Margin is the value of the firm's products and services less
their costs, as perceived by the firm's customers, and margin is the objective of
the chain.
 True
 False
7. A firm can link its value activities to those of its suppliers by
implementing systems that make input resources available when needed.
 True
 False
8. The MNC is an open system that seeks to minimize the
uncertainty that its environment imposes.
 True
 False
9. One problem with legacy data is that if it is not in digital format
it cannot be captured as images.
 True
 False
10. JPG is a common image format used mainly for Web images
that achieves reduction of file size over most other formats.
 True
 False
11. Strategic planning for information resources is the concurrent
development of strategic plans for information services and the firm so that the
firm's plan reflects the support to be provided by information services and the
information services plan reflects the future demands for systems support.
 True
 False
12. The centralized expertise strategy localizes control within the
parent company.
 True
5

6.  False
13. With the centralized control strategy the products for all of the
world markets are manufactured centrally and shipped to the subsidiaries.
 True
 False
14. With the centralized control and distributed expertise strategy
the parent and all of the subsidiaries work together in formulating strategies and
operating policies, as well as in coordinating the logistics of getting the products
to the right markets.
 True
 False
15. A global information system can be defined as a system that
consists of networks that cross national boundaries.
 True
 False
Multiple Choice #3
1. Which environmental element interfaces with all areas of the business?
a) Financial community
b) Customers
c) Competitors
 Government
2. Which business area deals with customers, competitors, and the government
for electronic commerce operations?
a) Human resources
b) Information services
 Marketing
c) Finance
3. What percent of electronic commerce is B2B?
a) 6%
 94%
b) 40%
c) 15%
4. Which commercial database provides legal, financial, and governmental
information from a wide variety of sources?
 LEXIS-NEXIS
a) Reuters
b) DIALOG
c) Global eXchange Services
5. Which term is frequently used in conjunction with Interorganizational Systems
(IOS)?
a) EFT
 EDI
b) B2C
c) B2B
6. The ability of a firm to resolve disagreements with its suppliers and customers
to its own advantage is called its:
a) comparative efficiency.
b) internal efficiency.
c) interorganizational efficiency.
 bargaining power.
7. When a firm can reduce the "shopping" costs that its customers incur the firm
is:
 reducing search-related costs.
a) reducing shopping costs.
b) increasing their bargaining power.
c) increasing their switching costs.
8. When the services that operate and manage the communications line are
provided in addition to the line itself, this is referred to as:
6

7. a) EDI.
b) EFT.
 VAN.
c) VPN.
9. Which statement is false regarding extranets?
a) Extranets are another means of establishing an IOS.
b) Extranets allow the sharing of sensitive computer-based information with
other firms using information technology commonly associated with the
Internet.
 The cost of equipment to establish an extranet may be thousands of dollars
at each site and the secure communications lines can be hundreds of
dollars each month.
c) Security and privacy are serious concerns so the extranets are generally
secured behind a firewall.
10. Which of the following is a direct benefit of adopting an interorganizational
system?
 Increased operational efficiency
a) Increased ability to compete
b) Improved relationships with trading partners
c) Improved customer service
11. Which language can provide file formatting structure and a means for
describing data within the file of a Web page?
a) HTML
 XML
b) DHTML
c) CORBA
12. The type of sales that are made by a firm that does not operate a physical
storefront are called:
a) catalogue sales.
 virtual sales.
b) hybrid sales.
c) Internet sales.
13. What agency provided the first network to demonstrate the feasibility of
computer-to-computer transmission of data in the form of packets?
a) CSNET
b) NSFNET
 ARPANET
c) CERN
14. Which agency is the European Particle Physics Laboratory?
a) ARPANET
b) CSNET
c) NSFNET
 CERN
15. Which term was coined in the book Neuromancer?
a) Internet
b) World Wide Web
c) Information superhighway
 Cyberspace
True or False#3
1. The narrow definition of electronic commerce includes only business
transactions that deal with customers and suppliers, connecting their respective
computers via the Internet.
 True
 False
2. In a 1996 survey, firms listed three constraints for participating in electronic
commerce in the following order: security concerns, immature or unavailable
software, and high costs.
 True
7

8.  False
3. The Library of Congress provides an index of over 170,000 U.S. and Canadian
manufacturers and can be used to obtain information on products and their
suppliers.
 True
 False
4. Electronic funds transfer is one means for achieving an interorganizational
system.
 True
 False
5. Comparative efficiency consists of improvements in the firm's own operations,
thus enabling the firm to gather data faster, analyze it faster, and make
decisions faster.
 True
 False
6. When data representing money is transmitted over a computer network it is
called electronic funds transfer.
 True
 False
7. XML is an extension of the hypertext markup language that is used to code Web
pages.
 True
 False
8. Two reasons that B2C dwarfs the dollar value of B2B is that more products and
services are becoming available for digital delivery and more consumers are
overcoming their reluctance to purchase using the Web.
 True
 False
9. Entertainment has been one of the earliest products to take advantage of the
Internet.
 True
 False
10. Hybrid sales are used most frequently when the firm either cannot construct a
physical storefront or finds a physical storefront to be economically unjustified.
 True
 False
11. The World Wide Web is information accessible via the Internet where
hypermedia documents are stored and can be retrieved by means of a unique
addressing scheme.
 True
 False
12. Cyberspace is a term normally used to describe a positive force that gives
everyone access to the wealth of information that exists in our modern society.
 True
 False
13. The Golden Rule of Marketing could be "Location, Location, Location."
 True
 False
14. The Web business application with which the general public is most familiar is
the online auctions.
 True
 False
15. One suggestion for successful Internet use is to emphasize content over
artwork, audio, and video.
 True
 False
Multiple Choice#4
8

9. 1.Which information system is intended to meet the general information needs of
managers throughout the firm?
Management information system
a)Information resources information system
b)Executive information system
c)Financial information system
2.How did the concept of the virtual office get its start?
a)Teleprocessing
Telecommuting
b)Hoteling
c)Office automation
3.Which term was introduced because it seemed like an appropriate way to describe
how employees could electronically "commute" to work?
a)Teleprocessing
Telecommuting
b)Telepresence
c)Hoteling
4.Which result from a USA Today survey of financial and information technology
firms engaged in telecommuting is false?
a)80 percent plan to scale back.
b)62 percent plan a decrease.
c)21 percent plan a phase-out.
20 percent plan an increase.
5.Which type of video conferencing occurs when people at the receiving sites can
talk to people at the transmitting site, while everyone views the same video
images?
a)One-way video and audio
One-way video and two-way audio
b)Two-way video and audio
c)Two-way video and one-way audio
6.Which of the following is not a guiding principle for achieving hoteling?
a)Design space for functional needs.
Pay the employee travel expenses for coming to the office.
b)Decrease the number of enclosed office spaces.
c)Eliminate assigned offices.
7.Which statement is false regarding the Three I Economy?
a)The demand for skyscrapers and commuters will decrease.
Top management must have the skills and knowledge necessary to succeed in the
Three I Economy.
b)Today, almost every firm's activities encompass more information, ideas, and
intelligence than in previous years.
c)Education and government must be dedicated to the change.
8.The specialist whose duties fall into the areas of planning, implementation,
operation, and security is the:
a)data administrator.
b)database specialist.
c)systems analyst.
database administrator.
9.Which manager do programmers work for in a firm's centralized information
services unit?
a)Network manager
b)Manager of database administration
Manager of systems maintenance
c)Manager of computer operations
10. Which communication network is utilized to interface
with vendors for the purpose of acquiring information resources?
a)Innovation network
b)Visioning network
Sourcing network
9

10. c)Outsourcing network
11. Which model maintains the underlying assumption that IT
will not actively initiate business innovations but will provide the networks so that
innovation can be accomplished by the business areas?
a)Partner model
Platform model
b)Scalable model
c)Innovation model
12. In the traditional communication chain, who
communicates directly with the database administrator, systems analyst, and
network specialist?
a)Programmer
b)Operator
c)Computer
User
13. Which systems development knowledge consists of
understanding how to use information at each step of the problem-solving
process, where that information can be obtained, and how to share information
with others?
a)Computer literacy
Information literacy
b)Business fundamentals
c)Systems modeling
14. Which systems development skill involves the study and
ultimate understanding of a situation for the purpose of formulating a response or
solution?
a)Communications skills
Analytical ability
b)Creativity
c)Leadership
15. The challenge faced by developing a knowledge
management system that states "that a clear definition of KM must be formulated
and used within the organization that fits within the existing IT infrastructure, falls
into which logical set?
a)Executive/strategic management
b)Cost, benefits, risks
Standards
c)Operational management
True or False#4
1. Business area information systems are tailored to the physical organization.
 True
 False
2. The concept of a virtual office got its start with teleprocessing.
 True
 False
3. In the 1970s the term teleprocessing was used to describe data
communications.
 True
 False
4. One of the disadvantages of telecommuting is that the employees feel that they
become victims of an electronic layoff.
 True
 False
5. Advantages of the virtual office include reduced facility cost, reduced
equipment cost, reduced work stoppages, and social contribution.
 True
 False
10

11. 6. Database administrators work with users to develop new systems and improve
existing systems.
 True
 False
7. Network administrators work with systems analysts and users in establishing
the data communications networks that tie together widespread computing
resources.
 True
 False
8. A visioning network enables the CIO to work with top management in strategic
planning for information resources.
 True
 False
9. The basis for the platform model is that two sourcing networks are utilized to
interface with vendors when engaging in infrastructure management and
solutions delivery.
 True
 False
10. It is not necessary for end users to assume total responsibility for systems
development, but they must do some portion of it.
 True
 False
11. Systems theory describes how to depict phenomena as normative systems
structures.
 True
False
12. The systems development skill of delegation is the ability to direct others to
perform tasks.
 True
 False
13. The knowledge management challenges at the operational management level
include processes must be put in place for ensuring that knowledge to be
incorporated in the KM system is relevant, legitimate, and current.
 True
 False
14. National policy may dictate that data be processed within the country rather
than transmitted out of the country and processed elsewhere.
 True
 False
15. Transborder data flows are the movements of machine-readable data across
national boundaries.
 True
 False
Multiple Choice#5
1.Which computer component is a device that presents and/or transmits data from
the computer to the user?
a)CPU
b)RAM
Output device
c)Input device
2.Which processor speed refers to billions of cycles per second?
a)Megahertz
Gigahertz
b)Terahertz
c)Petaflops
3.Which of the following is not a term used to describe data that is stored in a
computer?
a)Memory
11

12. b)Primary storage
Secondary storage
c)Random access memory
4.The type of in-line memory module that holds a set of 9 memory chips where the
9th
chip is used for error checking is referred to as:
a) DRAM
b) SDRAM
SIMM
c) DIMM
5.What type of storage holds approximately 650MB of data?
a) 3 ½ inch floppy disk
b) Zip disk
CD disk
c) DVD disk
6.Which type of printer is essentially a copier machine?
Laser printer
a) Ink-jet printer
b) Plotter
c) Dot-matrix printer
7.What is the key feature of personal computing devices?
a) Long battery life
Mobility
b) Ability to synchronize data files with other computer
resources
c) Small, but functional display screen
8.Which of the following is not a popular brand of personal digital assistants?
a) Palm
b) Handspring
c) Blackberry
Nokia
9.Which type of software manages the computer's processes, functioning as an
interface, connecting the user, the application software, and the hardware?
a) System software
Operating system
b) Utility program
c) Translator program
10. Which technology takes advantage of the high quality
communications achieved with fiber optics?
a) Virtual private network
Frame relays
b) Asynchronous transfer mode
c) Private lines
11. Which of the following is not a characteristic of the
System Network Architecture protocol?
a) It is designed for large computers.
It does not require a host computer.
b) It requires firms to purchase additional hardware to
control communications.
c) It was established by IBM in 1974.
12. Which company was not involved in the development of
Ethernet?
a) Xerox
b) Intel
IBM
c) Digital Equipment Corporation
13. The communications network hardware that connects
LANs together is referred to as a:
a) hub.
b) router.
12

13. switch.
c) NIC.
14. Which of the following terms is just the collection of
networks that can be joined together?
a) Internet
internet
b) intranet
c) extranet
15. In the office of the future which personal computing
device might you plug into your computer?
a)Handheld PCs
b)Pocket PCs
Cell phones
c)Tablet PCs
True or False#5
1.Random access memory is located on the computer's main circuit board.
 True
 False
2.The combination of processor speed and circuitry improvement achieves Moore's
Law.
 True
 False
3.DRAM runs much faster than most conventional memory because it synchronizes
its cycles with the processor's cycles.
 True
 False
4.Three types of high capacity media include Zip disks, compact disks, and digital
versatile discs.
 True
 False
5.The most compelling reason to use machine-captured data is the low cost.
 True
 False
6.The practical advantage of ink-jet printers over laser printers is that they produce
color output at a relatively low cost.
 True
 False
7.Battery life is a constraint of personal computing devices.
 True
 False
8.A utility is an operating system routine that enables the user to perform certain
basic data processing operations that are not unique to a particular user's
applications.
 True
 False
9.A third generation language is one that expresses what is to be done by the
computer without explicitly defining how the tasks will take place.
 True
 False
10. A protocol is the specification for formatting data to be transferred
between communications equipment.
 True
 False
11. T-1 and T-3 lines can be multiplexed, broken into separate lanes of
communication.
 True
 False
13

14. 12. VANs are a secure, fast, and inexpensive connection between
organizations.
 True
 False
13. The token in a Token Ring network is the host computer that is allowed
to control communications.
 True
 False
14. TCP/IP stands for Transmission Control Protocol/Internet Protocol
 True
 False
15. A gateway is a device that receives a data packet from a computer at the
end of one spoke of the star in a star network and copies the contents to all other
devices.
 True
 False
14