Information Systems Today 7th Edition by Valacich – Test Bank

Information Systems Today 7th Edition by Valacich – Test Bank

Information Systems Today, 7^th Global Edition (Valacich)

Chapter 6 Enhancing Business Intelligence Using Information Systems

1) Which of the following statements is true about business intelligence?

1. A) It is an act of outsourcing tasks, traditionally performed by an employee or contractor, to an undefined, large group of people or community, through the use of information technology.
2. B) It is the process by which a customer-owned mutual organization or cooperative changes legal form to a joint stock company.
3. C) It is the use of information systems to gather and analyze information from internal and external sources in order to make better business decisions.
4. D) It is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.
5. E) It is the use of human resources to gather and analyze information from external sources in order to make better business decisions.

Answer: C

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

2) “Backward looking” budgets are typically based on ________.

1. A) forecasts
2. B) marketing research
3. C) future trends
4. D) historical data
5. E) current market conditions

Answer: D

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

3) Responding to threats and opportunities and continuous planning are based on analyzing internal data primarily from the ________ level of an organization.

1. A) operational
2. B) executive
3. C) tactical
4. D) business
5. E) strategic

Answer: A

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

4) When we consider entities as tables, each row is a ________.

1. A) field
2. B) record
3. C) bot
4. D) form
5. E) query

Answer: B

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

5) When we consider entities as tables, each column is a(n) ________.

1. A) attribute
2. B) record
3. C) form
4. D) applet
5. E) query

Answer: A

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

6) An attribute is also referred to as a ________.

1. A) form
2. B) record
3. C) field
4. D) query
5. E) bot

Answer: C

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

7) A ________ is a collection of related attributes about a single instance of an entity.

1. A) bot
2. B) form
3. C) query
4. D) field
5. E) record

Answer: E

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

8) In a database management system (DBMS), data are kept separate from the applications’ programming code. This means that ________.

1. A) an application cannot be changed without making changes to the database
2. B) an application’s programming code needs to be updated continuously to keep up with the database
3. C) an application needs to be changed when the database is changed
4. D) the database does not need to be changed if a change is made to an application
5. E) the database needs to be changed when a change is made to an application

Answer: D

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

9) One of the advantages of a database approach is program-data independence. This means that it is ________.

1. A) easier to deploy and control data access using a centralized system
2. B) easier to evolve and alter software to changing business needs when data and programs are independent
3. C) a centralized system, thereby making it easier to enforce access restrictions
4. D) a centralized system, thereby making it much easier to enforce standards and rules for data creation, modification, naming, and deletion
5. E) useful for eliminating redundancy, thereby reducing the possibilities of inconsistency

Answer: B

AACSB: Information technology

Difficulty: Moderate

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

10) Identify an advantage when the database approach makes it easier to deploy and control data access.

1. A) improved data accessibility
2. B) improved data consistency
3. C) improved data quality
4. D) increased security
5. E) improved data sharing

Answer: E

AACSB: Information technology

Difficulty: Moderate

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

11) Which of the following is a risk associated with a database approach?

1. A) enforcement of standards
2. B) program-data independence
3. C) organizational conflict
4. D) minimal data redundancy
5. E) reduced program maintenance

Answer: C

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

12) Data type helps a database management system (DBMS) to ________.

1. A) present the data in a useful format
2. B) format data
3. C) allocate storage space
4. D) eliminate data duplication
5. E) retrieve information

Answer: C

AACSB: Information technology

Difficulty: Moderate

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

13) Once the data model is created, the format of the data is documented in a data ________.

1. A) warehouse
2. B) entry
3. C) mart
4. D) domain
5. E) dictionary

Answer: E

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

14) A data dictionary is also known as a(n) ________.

1. A) data mart
2. B) data warehouse
3. C) metadata repository
4. D) ubiquitous computing
5. E) clickstream data

Answer: C

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

15) Bringes, a retail chain, has retail stores across three states. With its current legacy system, Bringes is having problems tracking the inventory levels for its stores. It is planning to implement an Oracle database system to replace this legacy system. Which of the following most supports Bringes’ decision to replace its legacy system with an Oracle database system?

1. A) Implementing an Oracle database system will require Bringe to hire additional specialized personnel to manage it.
2. B) Partial implementation of the Oracle database system can create more problems than it is likely to solve.
3. C) Conversion cost required for the implementation of an Oracle database system is not supported by the IT budget.
4. D) Bringes’ channel partners use a database system that supports the Oracle database system.
5. E) Maintenance of an Oracle database system is more expensive than the legacy system presently in use.

Answer: D

AACSB: Reflective thinking; Information technology

Difficulty: Moderate

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Application

16) Treston, an automobile manufacturer, recently implemented a new database system. It was confident that this system would help enhance the company’s internal (employees) and external (customers and channel partners) communication. Treston had planned to pursue a just-in-time inventory system soon after the database system was implemented. After the implementation of the database system, however, Treston realized that the database system was not effective. Which of the following can be cited as a reason for the failure of Treston’s database system?

1. A) Aerodoungle launched a new version of Enterprise Database Access, which was better than Treston’s database system.
2. B) The maintenance cost of Treston’s new database system was less than the one it was previously using.
3. C) Treston’s new database system was not supported by the database system of its suppliers and distributors.
4. D) Treston’s competitors implemented its database a few days prior to Treston’s implementation date.
5. E) Treston had internally trained personnel managing its new database system, thereby keeping costs low.

Answer: C

AACSB: Reflective thinking; Information technology

Difficulty: Moderate

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Application

17) Business rules are captured by the designers of a database and included in a data dictionary to ________.

1. A) organize and sort the data, complete calculations, and allocate storage space
2. B) prevent illegal or illogical entries from entering the database
3. C) eliminate data duplication
4. D) make sure that each table contains only attributes that are related to an entity
5. E) capture the structure of the database

Answer: B

AACSB: Information technology

Difficulty: Moderate

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

18) ________ are used to capture data to be added, modified, or deleted from a database.

1. A) Forms
2. B) Reports
3. C) Queries
4. D) Bots
5. E) Layers

Answer: A

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

19) A(n) ________ is a compilation of data from a database that is organized and produced in printed format.

1. A) form
2. B) attribute
3. C) field
4. D) entity
5. E) report

Answer: E

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

20) A query is used to ________.

1. A) organize and sort the data in a database
2. B) allocate storage space for a database
3. C) eliminate data duplication
4. D) retrieve data from a database
5. E) prevent illegal or illogical entries from entering the database

Answer: D

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

21) ________ systems are designed to handle multiple concurrent transactions from customers.

1. A) Online transaction processing
2. B) Product allocation
3. C) Yield optimization management
4. D) Network transaction maximization
5. E) Real utility management

Answer: A

AACSB: Information technology

Difficulty: Moderate

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

22) Systems that are used to interact with customers and run a business in real-time are called ________ systems.

1. A) tactical
2. B) strategic
3. C) operational
4. D) informational
5. E) executive

Answer: C

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

23) ________ are the data that is deemed most important in the operation of a business.

1. A) Metadata
2. B) Master data
3. C) Reference data
4. D) Query data
5. E) Tactical data

Answer: B

AACSB: Information technology

Difficulty: Easy

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

24) Which of the following statements is true about an operational system?

1. A) Its primary purpose is to support managerial decision making.
2. B) It consists of historical or point-in-time data.
3. C) Its goal is to enhance ease of access and use.
4. D) It consists of narrow and simple updates and queries.
5. E) It is primarily used by managers.

Answer: D

AACSB: Information technology

Difficulty: Moderate

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept

25) Which of the following statements is true about an information system?

1. A) Its primary purpose is to run the business on a current basis.
2. B) It is primarily used by online customers, clerks, salespersons, and administrators.
3. C) It consists of narrow and simple updates and queries.
4. D) Its design goal is to enhance performance.
5. E) Its design goal is to enhance ease of access and use.

Answer: E

AACSB: Information technology

Difficulty: Moderate

Learning Obj.: 6.1: Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence.

Classification: Concept