Practice questions for Business Management and Behavioral Studies

1. Chapter 11 – Management Information System
Past paper questions 1
Q. Computer users are familiar with starting their PC and working directly with the
software and their data files. Most know that if they forget to save their work then it
can be lost. It is important though to be aware that not all systems operate so directly
with the user and that you need an understanding of the common modes of processing
and other computer operational terms. Define the following:
(a) Batch Processing
(b) Real Time Processing (06)
Q. Networks have played an important role in the significant growth of computer
applications and office automation. Large as well as small businesses are using
networking. You are required to briefly explain the benefits of networking, in corporate
environment. (04)
Q. Greek Laboratories Limited (GLL) is a drug manufacturer and has a Management
Information System to control the decision making process.
Required:
(a) Differentiate between a closed loop control system and an open loop control
system.(04)
(b) Give any three examples of decisions that may be taken by GLL using each of the
above types of control systems. (06)
Q. Ekram Super Store (ESS) is a medium sized departmental store with a very high
turnover. It has a Management Information System (MIS) system in place which
produces a variety of reports. Mr. Taffazul, who has recently been appointed as the
manager is not satisfied with the effectiveness of the reporting system for decision
making purposes. He believes that MIS is of limited use unless it is integrated with a
Transaction Processing System (TPS).
Required:
(a) Describe MIS and TPS and give a suitable example of each. (04)
(b) Briefly describe how the integration of MIS with TPS would improve the process of
decision making at ESS. (04)
Q. The management of Jamal Airways (JA) is revisiting its information processing and
reporting systems. After carrying out a need analysis and evaluating the capabilities of
existing systems, the management is inclined to develop a customized Executive
Support System (ESS).
Required:
Being one of the board members of JA and an active supporter of ESS, identify the key
features of an ESS. (05)
Q. Sujawal Limited is engaged in the production and sale of consumer products. Its
products are marketed through wholesalers located in all the major cities of Pakistan.
During an annual get together of major stakeholders, a large number of wholesalers
have identified the following issues:
(i) Frequent stock-out of popular products.
(ii) Delays in processing of their orders.
(iii)Improper response from customer services on their queries and complaints.
Required:
Explain what role can be played by the company’s IT department in addressing the
above complaints. (05)

2. Chapter 11 – Management Information System
Past paper questions 2
Q. The management of Proficient Consultants (PC) is considering to install an Expert
System as it is concerned about losing the expertise of some of its key employees.
However, the CEO is concerned that huge cost would have to be incurred which would
far outweigh the benefits.
Required:
(a) To what extent an Expert System can substitute the expertise of a key employee? (02)
(b) What other benefits can be secured by deploying an Expert System? (04)
Q. The Finance Manager of Nafees Traders (NT) wants to buy a customized Decision
Support System for assistance in various financial projections and decision making.
However, the management is not convinced with its utilitybecause it is of the view that
such programs cannot replace human intelligence, which is vital for business decisions.
On behalf of the Finance Manager, apprise the management about the uses and benefits
of a Decision Support System. (06)
Q. With increased automation of today’s businesses, the senior management of a company
is often overloaded with various types of data. The ability to efficiently use such data
for decision making purposes is quite often what distinguishes successful companies
from others. Executive Information System (EIS) is a decision support system which
is commonly used in many good organizations. You are required to:
(a) briefly explain EIS; and (03)
(b) list key advantages of an EIS. (03)
Q. Rettalic is a healthcare organization having subsidiaries in seven countries. All seven
subsidiaries have their own computerized systems. The management is now
considering the possibility of integrating the inventory and personnel functions of all
the seven subsidiaries in a single computerized system.
Required:
Describe briefly the key features of an ‘Inventory Management System’ and ‘Personnel
System’. (12)
Q. Management of Mind Care, a private hospital, is considering ways to enhance the use
of Information Technologyin order to maintain its competitive advantage. A consultant
who has been hired recently has advised to introduce an expert system.
Required:
What do you understand by an expert system? Give two suitable examples. (05)
Q. Market Gurus (Private) Limited is a marketing company with a large number of
customers and inventory items. It has been using software for processing its financial
transactions for a number of years. However, sales and inventory is being maintained
manually. Looking at the ease of use provided by the computerized systems and the
success of first implementation, company has decided to computerize Sales and
Inventory functions of the company. Company has multiple warehouses and more than
ten sales outlets across the country.
Required:
As head of finance you are required to draw up a plan incorporating essential input
requirements, controls and output needs for:
(a) Order Processing Application (10)
(b) Inventory Control Application (10)

3. Chapter 11 – Management Information System
Past paper questions 3
Q. A medium size manufacturing company has following order fulfillment process:
Orders from the wholesalers from all over the country are received by visiting salesmen
and by telephone/fax. Salesmen or sales clerk attending the order fills an order form.
Filled order forms are sent to Accounts Receivables/Credit Control department.
They check order for customer credit limits and over due invoices. Approved orders
are sent to Finished Goods Warehouse. Here store clerks check availability of goods
and prepares Delivery Challans (DC). On the basis of DC goods are picked and
delivered to delivery van. DC is stamped as “delivered” and sent to Accounts
Receivables/Credit Control department. Accounts Receivables/Credit Control
department raises an invoice in a computer system. The system also produces Customer
Ledgers, Sales Reports and Control totals for positing to General Ledger.
Required:
How can Information Technology be used as competitive advantage for reducing order
fulfillment time and per order processing cost? (10)
Q. (a) What is an information system? (05)
(b) Explain the following systems in detail:
(i) Transaction Processing System. (05)
(ii) Management Information System. (05)
(iii) Decision Support System. (05)
(iv) Executive Information System. (05)
Q. As manager of a new departmental store, you find that the following computerized
systems need to be introduced:
(a) Inventory management system for ensuring that adequate stock is maintained;
(b) Airline booking system to make travel arrangements for executive.
Explain how these systems work, and state which part of each would exist at your
end.(20)