Managing Information Technology, 7e (Brown)
Chapter 5 Enterprise Systems
1) Which of the following is an intraorganizational system?
A) B2B
B) EDI
C) B2C
D) ERP
2) What is a characteristic of a system with batch processing?
A) transactions are processed in real time
B) enables interactive decision support
C) processing costs are typically lower than for online processing
D) none of the above
3) At Around-the-World-Warehouses, a shipping clerk or sales clerk enters the receipt or sale of
a product into a desktop computer. As soon as the entry is completed, a master file is updated
within a fraction of a second. This order entry system is an example of a(n):
A) online processing system.
B) batch processing system.
C) in-line system.
D) personal system.
4) An information system that supports a particular area of an organization, such as production or
marketing, is called a:
A) group support system.
B) functional information system.
C) vertically integrated information system.
D) transaction-processing system.
5) In describing a client/server system, the software needed to support the interactions between
the clients and the server is called:
A) clientware.
B) middleware.
C) expert system.
D) telecommunications interface software.
6) A vertically integrated information system may perform which of the following?
A) capture the initial sales data and produce invoices (acting as a transaction processing system)
B) summarize these data on a weekly basis for use by middle managers in tracking slow- and
fast-selling items as well as productive and unproductive salespeople (acting as a decision
support system)
C) analyze data for long-term trends for use by top managers (acting as an executive information
system)
D) all of the above
7) Which statement about virtualization is not true?
A) In server virtualization, a single server operates as if it were multiple servers.
B) In desktop virtualization, the user can be using a thin client or mobile device with limited
storage because the applications and data are actually stored on a server accessed by the client.
C) In server virtualization, all of the virtual servers on a single physical server must employ the
same operating system.
D) Benefits from virtualization include lower costs, ease of management, and flexibility.
8) Which of the following is a distinct characteristic of distributed systems?
A) less required coordination across sites
B) decreased security risks
C) dependence on high-quality telecommunications lines
D) communication and support costs are lower
9) In a client/server environment, Web servers and groupware servers are usually:
A) thin servers.
B) three-tier servers.
C) fat servers.
D) medium servers.
10) Which of the following benefits is associated with data warehousing?
A) historical data on business operations can be used to support decision making
B) large database machines can be kept in a single warehouse location
C) archival data is stored on magnetic data at a secure warehouse site
D) none of the above
11) The components of a three-tier client/server system include:
A) server, middleware, and client.
B) client, applications server, and database server.
C) database server, client, and middleware.
D) applications server, middleware, and client.
12) Which of the following statements about service-oriented architecture (SOA) is false?
A) Services can be developed internally to the organization or purchased externally.
B) Once a service is created, it can be used over and over again.
C) Services can communicate or be connected with one another.
D) none of the above
13) A type of transaction processing system that consists of a set of integrated business
applications, or modules, to carry out most common business functions (such as inventory
control, general ledger accounting, accounts payable, order processing, etc.) is called a(n):
A) distributed system.
B) client/server system.
C) enterprise resource planning system.
D) group support system.
14) All of the following statements about enterprise resource planning (ERP) systems are true
except:
A) the modules of an ERP system are integrated through common definitions and a common
database.
B) ERP systems are designed to support business processes that involve multiple functional
units.
C) the modules of an ERP system are typically designed for companies operating in the U.S.
only.
D) ERP systems are typically purchased from a software vendor.
15) Establishing a data warehouse requires software tools to do all of the following except:
A) operate the warehouse.
B) access and analyze data.
C) construct the warehouse.
D) process transactions (such as a sales order).
16) Which of the following CRM enterprise vendors offers only a hosted or on-demand solution?
A) Oracle
B) Microsoft
C) Salesforce.com
D) SAP
17) Which of the following are potential disadvantages of electronic mail systems?
A) can result in information overload
B) can result in the usage of offensive words by a sender who would not use them face-to-face
C) can be electronically monitored by supervisor
D) all of the above
18) Which statement about portals is not true?
A) A portal may be accessible to organizational employees only.
B) Portal software increases the cost of providing an intranet to employees.
C) A portal is equivalent to a firewall.
D) Portal software is used to improve a user’s access to internal information via a Web browser.
19) Which of the following is a potential business benefit from implementing an ERP system?
A) improved financial process controls
B) lower costs for inventory warehousing
C) re-engineered business processes
D) all of the above
20) Lotus Notes (an IBM product) is an example of which of the following types of application
software?
A) enterprise resource planning (ERP) system
B) transaction processing system
C) groupware
D) physician documentation for patient records
21) Which of the following is not a capability associated with groupware products?
A) data modeling
B) electronic bulletin boards
C) document sharing
D) instant messaging
22) According to the textbook, which of the following is not true when a firm is considering the
implementation of an intranet?
A) If the basic infrastructure is already in place (e.g., Web browsers and Web server),
implementation requires relatively little effort.
B) Little planning is required to design Web pages and contents.
C) The per-user costs are generally low.
D) Minimal user training is required.
23) A computer system that relies on extensive data input to produce a production schedule for
the factory and a schedule of needed raw materials is what kind of system?
A) computer-aided manufacturing (CAM)
B) shop floor control (SFC)
C) computer-aided process planning (CAPP)
D) material requirements planning (MRP)
24) A manufacturing computer system that logically groups parts according to physical
characteristics, machine routings through a factory, and similar machine operations is what kind
of system?
A) computer-aided process planning (CAPP)
B) group technology (GT)
C) computer-aided manufacturing (CAM)
D) computer-aided design (CAD)
25) Which one of the following answers consists of systems all of which have been defined in
this textbook as enterprise systems?
A) expert system, data mining, neural networks
B) groupware, intranet, group support systems
C) data warehousing, data mining, business intelligence systems
D) intranet, customer relationship management, groupware
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26) What are the three major categories of computer-integrated manufacturing (CIM) systems?
A) robotics, engineering systems, and manufacturing administration
B) design, factory operations, and engineering systems
C) manufacturing administration, factory operations, and design
D) engineering systems, manufacturing administration, and factory operations
27) Which of the following is not an example of an outcome that would be expected from the
implementation of a supply chain management (SCM) system?
A) reduction in time for getting a new product designed and at a retail store
B) reducing out-of-stock items in warehouses
C) more accurate accounting records
D) delivering the right number of products to the right customers at the right time
28) MRP II is a computer-based manufacturing administration system that usually has which of
the following components?
A) computer-aided design, master production schedule, and group technology
B) master production schedule, material requirements planning, and shop floor control
C) material requirements planning, computer-aided engineering, and master production schedule
D) shop floor control, manufacturing automation protocol, and material requirements planning
29) An engineering system that uses computer graphics to create and modify engineering designs
is what type of system?
A) computer-aided engineering (CAE)
B) computer-aided design (CAD)
C) graphic user design (GUD)
D) computer-aided process planning (CAPP)
30) What are the 5 basic components of a supply chain management (SCM) system?
A) market, source, make, sell, deliver
B) plan, source, buy, sell, deliver
C) plan, source, make, deliver, return
D) procure, make, market, sell, deliver
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31) Intraorganizational systems are systems that span organizational boundaries.
32) A client/server system is a particular type of distributed system.
33) Payroll and order entry systems are examples of transaction processing systems.
34) In a survey of IT leaders, CIO magazine found that the companies represented were
completely dependent on their ERP systems, but they also had major concerns including
complex system integration, high cost of ownership, and systems that are difficult to use.
35) Groupware systems attempt to provide an integrated approach to all aspects of interaction a
company has with its customers.