INFORMATION TECHNOLOGY AND ITS APPLICATION IN BUSINESS MCQ QUESTIONS AND ANSWERS
INFORMATION TECHNOLOGY AND ITS APPLICATION IN BUSINESS
MCQ QUESTIONS AND ANSWERS
PART – 1
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1. Processed data is called
A. Field
B. Information
C. Record
D. File
ANSWER: B
2. ______ is the most basic element of data
A. Character
B. Field
C. Record
D. Database
ANSWER: A
3. A group of related records constitutes a
A. Database
B. File
C. Information
D. Field
ANSWER: B
4. Information systems are composed of basic components.
A. 4
B. 3
C. 2
D. many
ANSWER: B
5. A human order taker can be bypassed when using a(n)
A. Automation system
B. Management information system
C. Transaction processing system
D. decision support system
ANSWER: C
6. The—-can help you choose a product.
A. office automation system
B. management information system
C. transaction processing system
D. decision support system
ANSWER: D
7. The expert system uses a (n) to select the most appropriate response.
A. inference engine
B. decision support system
C. knowledge base
D. data source
ANSWER: A
8. An intranet that is accessible by outside workers.
A. Firewall
B. EXTRANET
C. MIS
D. P2P
ANSWER: B
9. ____Is the capability to continue as if nothing has happened, even after a major component failure.
A. Redundancy
B. Interoperability
C. Fault Tolerance
D. Backup
ANSWER: C
10. A storage device that is connected directly to a network is an example of _____
A. network attached storage
B. storage area network
C. direct attached storage
D. RAID
ANSWER: A
11. A tape library will use a robotic component called a(n)____ to change and store multiple tape
cartridges
A. RAID
B. backup device
C. redundant system
D. autoloader
ANSWER: D
12. More than one of the same component is an example of a___ system.
A. Scalable
B. redundant
C. RAID
D. back-up
ANSWER: B
13. Which of the following information systems are used in the daily running of the business?
A. TPS
B. OPS
C. OAS
D. All the above
ANSWER: A
14. Which of the following is not one of the three ‘Cs’ describing groupware?
A. Coordination.
B. Communication.
C. Compliance.
D. Collaboration
ANSWER: C
15. Materials Requirements Planning (MRP) software is an example of an information systems application
in which of the following areas?
A. Office automation systems.
B. Operations management.
C. Marketing
D. Human resource management.
ANSWER: B
16. Which of the following is not one of the three main components in a decision support system?
A. Model
B. Communications
C. Data
D. Dialogue
ANSWER: C
17. Business Intelligence and data warehousing are used for which of the following?
A. Data mining.
B. Analysis of large volumes of product sales data.
C. What-if scenarios.
D. All of the above.
ANSWER: D
18. Which of the following is true about ERP software?
A. Always adaptable to how the business works.
B. Extensive skills available for development.
C. Supplier costs kept low.
D. Simplified support and maintenance through a supplier.
ANSWER: D
19. Which of the following is an EIS?
A. External information system.
B. Extended information system.
C. Electronic information system.
D. Executive information system.
ANSWER: D
20. What is the role of document image processing (DIP) systems?
A. Conversion into digital format
B. Product management.
C. Cash flow forecasting.
D. Producing customer invoices.
ANSWER: A
21. Buy-side e-commerce is:
A. The use of electronic communications for all business processes.
B. Any electronically mediated communication between an organisation and its stakeholders.
C. An organisation using electronic media to sell direct to its customers.
D. An organisation using electronic media to purchase from its suppliers.
ANSWER: D
22. To determine demand for Internet services in a market, companies should survey what?
A. Percentage that have access to the Internet.
B. Percentage that purchase online.
C. Percentage that use the Internet to inform their buying decision.
D. All of the above.
ANSWER: D
23. Which of these is a cost/efficiency driver of e-commerce?
A. Improving the range and quality of services offered.
B. Avoid losing market share to businesses already using e-commerce.
C. Increasing speed with which supplies can be obtained.
D. Customer demand.
ANSWER: C
24. Which of the following system components is responsible for ensuring that the system is working to
fulfil its objective?
A. Outputs
B. Processing
C. Feedback
D. Control
ANSWER: D
25. In terms of a system, finished products and information are examples of:
A. Feedback
B. Outputs
C. Control
D. Processing
ANSWER: B
26. Which of the following describes exchanges between a system and other systems or a system and any
external agencies?
A. Interface
B. Suprasystem
C. Environment
D. Subsystem
ANSWER: A
27. A system that responds to changes in the environment and modifies its operation accordingly known
as:
A. A deterministic system.
B. A closed system.
C. A soft system.
D. An adaptive system.
ANSWER: D
28. In terms of the resources that support information systems, the procedures used by people are a
example of:
A. Hardware resources.
B. Software resources.
C. People resources.
D. Data resources.
ANSWER: B
29. Which of the following is not one of the five competitive forces identified by Michael Porter?
A. The bargaining power of customers.
B. The threat of substitute products or services.
C. The threat of new entrants.
D. The threat of changes in the global economy.
ANSWER: D
30. Which category of computer-based information systems is concerned with supporting the functional
areas of an organisation?
A. Strategic information systems.
B. Business information systems.
C. Expert systems.
D. End user computing systems.
ANSWER: B
31. Which category of computer-based information systems is concerned with improving efficiency by
applying information technology to common administrative tasks, such as creating business documents?
A. Expert systems.
B. Office automation systems.
C. Business information systems.
D. Strategic information systems.
ANSWER: B
32. Which of the following defines the scope of a system?
A. Interface.
B. Boundary
C. Process
D. Feedback mechanism.
ANSWER: B
33. E-business is:
A. Any electronically mediated communication between an organisation and its stakeholders.
B. The use of electronic communications for all business processes.
C. An organisation using electronic media to purchase from its suppliers.
D. An organisation using electronic media to sell direct to its customers.
ANSWER: B
34. Information systems that monitor the elementary activities and transactions of the organizations are:
A. Management-level systems.
B. Operational-level systems.
C. Knowledge-level systems.
D. Strategic-level systems.
ANSWER: B
35. Projections and responses to queries are information output characteristics associated with a(n):
A. DSS
B. MIS
C. ESS
D. TPS
ANSWER: C
36. Summary transaction data, high-volume data, and simple models are information inputs characteristic
of a(n):
A. DSS
B. MIS
C. ESS
D. TPS
ANSWER: B
37. Which of the following individuals typically have less formal, advanced educational degrees and tend
to process rather than create information?
A. knowledge workers
B. executives
C. systems analysts
D. data workers
ANSWER: D
38. Management information systems usually:
A. Serve managers interested in weekly, monthly, and yearly results, not day-to-day activities.
B. Help managers make decisions that are unique, rapidly changing, and not easily specified in advance.
C. Provide managers with a generalized computing and telecommunications capacity that can be applied
to a changing array of problems.
D. Perform and record the daily routine transactions necessary to the conduct of business.
ANSWER: A
39. Decision support systems usually:
A. Serve managers interested in weekly, monthly, and yearly results, not day-to-day activities.
B. Help managers make decisions that are unique, rapidly changing, and not easily specified in advance.
C. Provide managers with a generalized computing and telecommunications capacity that can be applied
to a changing array of problems.
D. Perform and record the daily routine transactions necessary to the conduct of business.
ANSWER: B
40. Identifying customers and markets using data on demographics, markets, consumer behaviour, and
trends is an example of a(n):
A. Operational-level sales and marketing information system.
B. Knowledge-level sales and marketing information system.
C. Management-level sales and marketing information system.
D. Strategic-level sales and marketing information system.
ANSWER: B
41. Deciding where to locate new production facilities is a(n) example of a manufacturing and production
information system operating at the:
A. Operational level.
B. Management level.
C. Knowledge level.
D. Strategic level.
ANSWER: D
42. preparing short-term budgets is an example of a finance and accounting information system operating
at the:
A. Operational level.
B. Management level.
C. Knowledge level.
D. Strategic level.
ANSWER: B
43. Tracking employee training, skills, and performance appraisals is an example of a human resource
information system operating at the:
A. Operational level.
B. Management level.
C. Knowledge level.
D. Strategic level.
ANSWER: A
44. Assembling a product, identifying customers and hiring employees are:
A. Transactions
B. Phases
C. Business processes.
D. Business functions.
ANSWER: C
45. Which of the following is a network of facilities for procuring materials, transforming raw materials
into intermediate and finished products, and distributing the finished products to customers?
A. production chain
B. primary chain
C. supply chain
D. distribution chain
ANSWER: C
46. Information systems can facilitate supply chain management by:
A. Tracking the status of orders.
B. Rapidly communicating orders.
C. Providing product specifications.
D. Doing all of the above.
ANSWER: D
47. Enterprise systems support:
A. Manufacturing processes.
B. Financial and accounting processes.
C. Human resource processes.
D. All of the above.
ANSWER: D
48. Which of the following level of managers develop short- and medium-range plans, schedules, and
budgets and specify the policies, procedures, and business objectives for their sub-units of the company?
A. Strategic
B. Tactical
C. Operational
D. Front line
ANSWER: B
49. Information has three dimensions. They are
A. Time, consent, and form
B. Time, content, and form
C. Cost, content, and form
D. Time, content, and Value
ANSWER: B
50. According to your text book, the emerging class of applications focuses on personalized decision
support, modelling, information retrieval, data warehousing, what-if scenarios, and reporting is called:
A. Decision Support Trends
B. Decision Support History
C. Decision Support models
D. Decision Support class
ANSWER: A
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