Business Information Systems MCQ Questions and Answers Part – 3

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Business Information Systems MCQ Questions and Answers Part – 1

Business Information Systems MCQ Questions and Answers Part – 2

Business Information Systems MCQ Questions and Answers Part – 3

101. 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
102. 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
103. 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
104. Assembling a product, identifying customers and hiring employees are
A. Transactions
B. Phases
C. Business processes
D. Business functions
ANSWER: C
105. 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
106. 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
107. Enterprise systems support
A. Manufacturing processes.
B. Financial and accounting processes.
C. Human resource processes.
D. All of the above
ANSWER: D
108. A computer security protocol for logging in would be an example of the ______________ component of an information system
A. software
B. hardware
C. data
D. procedure
ANSWER: D
109. Customer numbers and their names would be an example of the component of an order management information system
A. software
B. hardware
C. data
D. procedure
ANSWER: C
110. Non-routine cognitive skills include
A. Communication.
B. Problem-solving.
C. Abstract reasoning.
D. All of the above.
ANSWER: D
111. The quality of your _______________is a large part of the quality of your information system.
A. computer
B. thinking
C. time
D. challenges
ANSWER: B
112. Which of the following is not a characteristic of good information?
A. interchangeability
B. relevance
C. cost effectiveness
D. Accuracy
ANSWER: A
113. If you are a _________________________recipient of sensitive information, such as might be overheard or contained in a misdirected email, this would not be illegal, but might be unethical to use it.
A. active
B. passive
C. proper
D. business
ANSWER: B
114. A human order taking can be bypassed when using a(n)____________________
A. Office automation system
B. Management information system
C. Transaction processing system
D. Decision support system
ANSWER: C
115. Data mining cannot be done if
A. operational data has not been archived
B. earlier management decisions are not available
C. the organization is large
D. all processing had been only batch processing
ANSWER: A
116. Batch processing is preferred over on-line transaction processing when i) Processing efficiency is important ii) The volume of data to be processed is large iii) Only periodic processing is needed iv) A large number of queries are to be processed
A. i ,ii
B. i ,iii
C. ii ,iii
D. i ,ii, iii
ANSWER: D
117. On-line transaction processing is used when
A. it is required to ensure correct processing
B. it is required to answer random queries & all files are available on-line
C. all files are available on-line
D. all files are stored using hard disk
ANSWER: B
118. Which is not a domain of Artificial Intelligence?
A. Virtual Reality
B. Intelligent Agents
C. Expert System
D. None of the above
ANSWER: D
119. Which one of the following is used for evaluating credit risks?
A. Virtual Reality
B. Neural Network
C. Fuzzy Logic
D. None of the above
ANSWER: B
120. Which computer-based model is developed after human brain?
A. Fuzzy Logic
B. Neural Network
C. Virtual Reality
D. All of the above
ANSWER: B
121. Knowledge based system supports__________________________
A. Knowledge of creation
B. Knowledge of support
C. Knowledge of Dissemination
D. All of the above
ANSWER: D
122. Which of the system uses Multidimensional data analysis?
A. DSS
B. MIS
C. ESS
D. All of the above
ANSWER: A
123. Cybernetic system is the one which is
A. Self Monitoring
B. Self controlling
C. Self regulating
D. All of the above
ANSWER: D
124. Globalization and the increasing internet users around the world, give IT budgets
A. high priority
B. less important
C. more component
D. more productivity
ANSWER: A
125. MRP II is accurately described as
A. MRP software designed for services
B. MRP with a new set of computer programs that execute on micro
C. MRP augmented by other resource variables
D. usually employed to isolate manufacturing operations from other aspects of an organization
ANSWER: C
126. Enterprise Resource Planning (ERP) is
A. severely limited by current MRP computer systems
B. not related to MRP
C. an advanced MRP II system that ties-in customers and suppliers
D. not currently practical
ANSWER: C
127. The extension of MRP which extends to resources such as labour hours and machine hours, as well as to order entry, purchasing, and direct interface with customers and suppliers is
A. MRP II
B. Enterprise Resource Planning
C. the master production schedule
D. closed-loop MRP
ANSWER: B
128. Distribution Resource Planning (DRP) is
A. a transportation plan to ship materials to warehouses
B. a time-phased stock replenishment plan for all levels of a distribution
C. a shipping plan from a central warehouse to retail warehouses
D. material requirements planning with feedback loop from distribution
ANSWER: B
129. In what way are Distribution Resource Planning (DRP) and Material Requirements Planning (MRP) similar?
A. Both employ similar logic and procedures.
B. Both are employed in a manufacturing organization.
C. Both work most efficiently with the largest lot sizes.
D. Both are employed by retail organizations.
ANSWER: A
130. Which is true in Enterprise resource planning (ERP)
A. has existed for over a decade
B. does not integrate well with functional areas other than operations
C. is inexpensive to implement
D. automates and integrates the majority of business processes
ANSWER: D
131. Enterprise resource planning (ERP)
A. has been made possible because of advances in hardware and software
B. uses client/server networks
C. creates commonality of databases
D. All of the above are true of ERP.
ANSWER: D
132. Which of the following is false concerning enterprise resource planning (ERP)?
A. It attempts to automate and integrate the majority of business processes.
B. It shares common data and practices across the enterprise.
C. It is inexpensive to implement
D. It provides and accesses information in a real-time environment.
ANSWER: C
133. All of the following are advantages of enterprise resource planning (ERP) except
A. creates commonality of databases
B. increases communications and collaboration worldwide
C. helps integrate multiple sites and business units
D. requires major changes in the company and its processes to implement
ANSWER: D
134. _________is a collection of logically related records and file
A. Folder
B. Application
C. Database
D. Field
ANSWER: C
135. Which of the following is/are file organisation type?
A. Pile
B. Sequential
C. Indexed
D. All the above
ANSWER: D
136. _________is an interface between users and the various databases
A. Application programmers
B. DB Administers
C. DBMS
D. All of these
ANSWER: C
137. Overall design of database is called_________
A. Structure
B. Architect
C. Schema
D. Layer
ANSWER: C
138. Information currently stored in the database is called____
A. Instance
B. Record
C. Data
D. Files
ANSWER: A
139. Lowest level of schema in a database is
A. Physical schema
B. Logical schema
C. Subschema
D. None of these
ANSWER: A
140. Highest level of schema in a database is
A. Physical schema
B. Logical schema
C. Subschema
D. None of these
ANSWER: B
141. Analysing data from different sources and perspectives and summarizing it into useful information is
A. Data warehousing
B. Data Mining
C. Data Digging
D. Data Banking
ANSWER: D
142. Which of the following is not included in three levels of data abstraction
A. Physical
B. Logical
C. View
D. data link
ANSWER: D
143. A system which records and report business transactions, flow of funds and generate financial statements is
A. Management Information system
B. Financial Information system
C. Accounting Information system
D. Executive information system
ANSWER: C
144. The automatic transfer and positioning of work by machine without significant human intervention or
operation is_____
A. Updating
B. Automation
C. Computerisation
D. Mechanisation
ANSWER: B
145. An information system within a business organisations that support the traditional functions such as marketing, finance or production is
A. MIS
B. BIS
C. FIS
D. EIS
ANSWER: B
146. Restructuring and transforming a business process by a fundamental rethink and redesign to achieve dramatic improvement in cost, quality etc
A. Automation
B. Business process Reengineering
C. ERP
D. Modernisation
ANSWER: B
147. A system of creating, delivering and receiving electronic message is
A. Information system
B. Communication system
C. Electronic system
D. Any of the above
ANSWER: B
148. A set of tools to help application developers to complete software development quickly and accurately is
A. CAD
B. CAM
C. CASE
D. CIM
ANSWER: C
149. CIM stands for
A. Computerised information system
B. Computer integrated manufacturing
C. Common information system
D. Commercial information system
ANSWER: B
150. A Business Information System planning technique that identify key business goal and strategies is
A. AIS
B. CSF
C. CAD
D. CPM
ANSWER: B

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A.Sulthan, Ph.D.,
Author and Assistant Professor in Finance, Ardent fan of Arsenal FC. Always believe "The only good is knowledge and the only evil is ignorance - Socrates"