11) Describe end-user computing and the advantages and risks involved.
12) End-user development is inappropriate for which types of systems?
A) systems that process a large number of transactions
B) systems that need to be developed rapidly
C) systems that must be easy to use
D) organizations that have large IT departments
13) Identify the system below that is likely to be most appropriate for end-user development.
A) an accounts receivable system
B) a general ledger system
C) an inventory system
D) a loan amortization spreadsheet program
14) True or False: The IT department should be given control of end-user computing (EUC).
15) True or False: End-user computing can eliminate many of the analyst-programmer
communication problems associated with the traditional program development.
16) If recent trends in end-user computing (EUC) persist, EUC will represent ________ of all
information processing by the end of 2020.
A) 15% – 24%
B) 20% – 49%
C) 50% – 74%
D) 75% or more
17) Why are end-user created systems often poorly documented?
A) Users often do not know how to document systems properly.
B) Users often consider systems documentation to be unimportant.
C) Users often believe it is too expensive to properly document systems.
D) Users are often unaware they need to properly document systems.
18) Who should maintain control of access to date in a user-created system with proper controls?
A) end-users
B) management
C) the IT department
D) a help desk
21.4 Explain why organizations outsource their information systems, and evaluate the benefits
and risks of this strategy.
1) How does outsourcing improve an organization’s utilization of assets?
A) by allowing a company to completely eliminate its IS department, which will reduce its
payroll costs
B) by allowing the company to sell assets to outsourcers and improve their cash position
C) by eliminating the expense of keeping up with the latest technology and, thus, eliminate the
drain on cash reserves
D) Both B and C above are correct.
2) Which of the following is not a benefit of outsourcing?
A) access to greater expertise and more advanced technology
B) greater control
C) improved development time
D) lower costs
3) The risk of losing a fundamental understanding of a company’s AIS needs and the strategic
users of an AIS as a result of outsourcing is referred to as
A) focus reduction.
B) loss of control.
C) reduced competitive advantage.
D) unfulfilled goals.
4) Why might outsourcing cause employee resistance?
A) Outsourcing often allows a company to better use its assets and scarce resources.
B) Outsourcing can lower a company’s overall IS costs.
C) Outsourcing often facilitates downsizing.
D) Outsourcing helps eliminate the peaks and valleys of system usage.
5) The unauthorized disclosure of sensitive information is an example of what risk associated
with outsourcing?
A) a locked-in system
B) a loss of control
C) a reduced competitive advantage
D) inflexibility
6) Benathir Donathat, director of the project committee, has received approval from management
for implementation of a new accounting information system. After putting out an RFP, the
committee settled on a Web-based application service provider that will manage all hardware
and software required by the system, with fees based on usage. The committee decided to go
with
A) canned software.
B) a turnkey system.
C) an outsourced system.
D) an end-user developed system.
7) Sabella Cycles declared bankruptcy in 2013 and has since closed 5 outlets, or approximately
25% of its locations. Sabella needs to reduce the costs of operating the firm’s information
systems. To accomplish this, Sabella might decide to
A) replace the existing system with one of a smaller scale.
B) customize the existing system.
C) outsource system operations.
D) purchase a canned software system.
8) In which of the following cases is outsourcing likely to be the best solution to the firm’s data
processing needs?
A) Peterson International is a trenchcoat wholesaler to retailers around the world. Sixty percent
of sales orders are taken during the months of August and September. Peterson needs a system to
manage online ordering and fulfillment.
B) Battlegoat Investment Strategies manages investors’ portfolios and provides services to
wealthy customers. The firm needs a system that will pull together selected investment data from
a variety of sources and that allows account managers to prepare customized reports.
C) Yachtman Limited is in the business of buying businesses, managing them for a few years,
then selling them for a profit. The firm requires a flexible system that will allow it to manage the
types of businesses it controls.
D) Desalinas LLC, manages the construction of desalinization plants. It needs a system that will
allow it to manage the construction process from bid to billing.
9) Describe outsourcing and identify the two types of outsourcing agreements.
10) Discuss how information system outsourcing can provide the organization with both a
business solution and asset management.
11) WorldWide Supermarket, a grocery store with 5,000 locations around the world surprised
financial markets by announcing that it was selling all of its computers to CompuService and
hiring the firm to operate and manage the supermarket’s system. WorldWide Supermarket just
engaged in which type of outsourcing agreement?
A) a locked-in agreement
B) a mainframe agreement
C) a client/server agreement
D) a cloud computing agreement
12) All of the following are reasons a company might choose to outsource its systems operations
and maintenance except
A) increased flexibility.
B) increased innovation.
C) reduce costs.
D) foster competition.
13) According to a survey discussed in your textbook, what percentage of outsourcing
experiences have been labeled as “disasters” by company executives?
A) 5%
B) 17%
C) 33%
D) 50%
14) Which or the following does not typically cause outsourcing failures?
A) lukewarm company buy-in
B) blind imitation of competitors
C) ill-defined outsourcing agreements
D) downsizing
1) Business Process Management views business processes as
A) strategic organizational assets.
B) a series of small tasks to be closely managed.
C) related activities that, once perfected, should be managed on an exception basis.
D) subsets of organizational strategy that should not be owned by any specific person or
department.
2) Which of the following is not an element of managing a business process “end to end”?
A) identifying process experts to oversee specific functions across units
B) designating a process owner
C) setting performance standards
D) establishing control and monitoring processes
3) Which of the following is not true about business process management (BPM) and enterprise
resource planning (ERP) systems?
A) ERP systems encompass all functions and processes in an organization, but BPM systems are
implemented at process or unit levels in an organization.
B) BPM systems are process-centered, but ERP systems are data-centered.
C) Organizations can use both ERP and BPM systems at the same time.
D) ERP and BPM systems rely heavily technology for communication and coordination.
4) Which of the following is not one of the ways in which a Business Process Management
System can improve internal control?
A) Innovative technology allows access and authorization controls to be programmed at the
transaction level.
B) Documents or transactions that require approval can be electronically routed to a manager.
C) Process rules are used to alert users when actions must be taken.
D) All actions and processes are monitored and documented in a process log for periodic review.
5) Describe each of the four important principles underlying Business Process Management
(BPM).
6) True or False: Business process management (BPM) evolved from business process
reengineering (BPR) because BPR had such a high success rate that firms wanted to expand it to
cover all aspects of a firm’s business process operations.
7) Which of the following is a one-time event that can yield dramatic performance
improvements?
A) Business process reengineering (BPR)
B) Business process management (BPM)
C) Business process innovation (BPI)
D) Business process diagramming (BPD)
8) Identify a key advantage of a business process management system (BPMS) as compared to
an event-based system.
A) ease of use
B) processing speed
C) cost
D) built in audit trail
21.6 Describe how prototypes are used to develop an AIS, and discuss the advantages and
disadvantages of doing so.
1) The basic premise of ________ is that it is easier for people to express what they like or
dislike about an existing system than to imagine what they would like in a system.
A) modified software
B) outsourcing agreements
C) prototyping
D) turnkey systems
2) Which statement below regarding prototyping is false?
A) Prototypes are considered “first drafts,” which are quickly built and intended to be discarded
when the real system is finished.
B) Developers who use prototyping still go through the systems development life cycle.
C) Prototypes help developers and end users make conceptual and physical design decisions.
D) Prototyping allows developers to condense and speed up parts of the analysis and design
phases.
3) The first step in developing a prototype emphasizes
A) developing a good prototype into a fully functional system.
B) speed and low cost rather than efficiency of operation.
C) that users identify changes to be made in an iterative process.
D) what output should be produced rather than how it should be produced.
4) Identify the system below where development would not likely benefit from treating a
prototype.
A) decision support systems
B) executive information systems
C) expert systems
D) systems that cross a number of organizational boundaries
5) Identify one disadvantage in prototyping.
A) Developers may shortchange the testing and documentation process.
B) Errors are likely to be detected and eliminated early in the development process.
C) Prototyping may be less costly than other approaches.
D) Prototyping usually produces a better definition of user needs than other approaches.
6) Firms should consider preparing a software prototype if the software
A) will be used for a critical function like accounts receivable.
B) automates an unstructured or semi-structured task.
C) can be produced using expertise available in-house.
D) is available as a canned package.
7) Firms should consider preparing a software prototype if the application
A) will be used for a critical function like inventory management.
B) automates a structured task.
C) can be produced using outside developers.
D) inputs and outputs are not clearly defined.
8) As part of the bidding process required for bidding on providing a new software system to
Kinect Incorporated, Thorton Wilder prepared diagrams that represent input and output
screenshots. These diagrams are an example of
A) CASE.
B) an operational prototype.
C) a RFP.
D) a nonoperational prototype.
9) As part of the bidding process required for bidding on providing a new software system to
Kinect Incorporated, Thorton Wilder prepared a functional program that simulated the new
system’s input and output interface. This program is an example of
A) CASE.
B) an operational prototype.
C) a RFP.
D) a nonoperational prototype.
10) Describe prototyping and identify when prototyping is appropriate. Identify the steps
involved in prototyping. Discuss the advantages and disadvantages of prototyping.
11) Prototyping is often appropriate when
A) there is a low level of uncertainty.
B) it is clear which questions need to be addressed.
C) there is a high likelihood of failure.
D) there are limited financial resources available.
21.7 Explain what computer-aided software engineering is and how it is used in systems
development.
1) Which is not a problem with CASE technology?
A) cost
B) incompatibility
C) lack of system documentation
D) unmet expectations
2) Which of the following were CASE tools not designed to do?
A) replace skilled designers
B) plan, analyze, design, program, and maintain an information system
C) automate important aspects of the software development process
D) enhance the efforts of managers in understanding information needs
3) Which of the following is an advantage of CASE?
A) It exhibits a high degree of cross-system compatibility.
B) It is an inexpensive technology that is accessible to small businesses.
C) Documentation is generated automatically.
D) It enhances the congruence between user expectations and the final system.
4) Describe computer-aided software (or systems) engineering (CASE) and identify the
advantages and disadvantages of CASE?