Managing And Using Information Systems A Strategic Approach 5th Edition By aa – Test Bank

Managing And Using Information Systems A Strategic Approach 5th Edition By aa – Test Bank

Chapter 07

File: chapter7TestBank.docx, Chapter 7, The Business of IT

Multiple Choice

1. This is a plan designed to counter a manmade or natural disaster that could cripple an enterprise.
a) Business Continuity Plan
b) Disaster Recovery Plan
c) Business Disaster Plan
d) Disaster Business Case
e) Business-IT Maturity Model

Ans: a (Medium)
Response: See page 201.

2. Which of the following should a manager expect from the IS organization?
a) Promotion of enterprise security.
b) Participation in setting and implementing strategic direction.
c) Innovation of current processes.
d) Management data, information and knowledge
e) All of the above

Ans: e (Hard)
Response: See page 201-202.

3. Cloud computing providers often take responsibility for managing data and applications for a firm. These cloud computing provider’s management of a firm’s information must consider international transfer of information. This is an example of which global IT issue?
a) Political stability
b) Transparency
c) Sourcing
d) Data flow across borders
e) Business Continuity Planning

Ans: b (Medium)
Response: See page 204.

4. The responsibility of the IT organization is to:
a) Manage core business functions like selling, accounting and manufacturing.
b) Partner with business managers to insure the right IS exists to support the business strategy.
c) Set the business strategy.
d) Have sole responsibility for building information systems for the organization.
e) Design business processes.

Ans: b (Medium)
Response: See page 205.

5. A company that seeks an IT portfolio that lowers costs as the primary business objective will be more likely to increase spending on ___________ because these applications can help automate processes.
a) strategic systems
b) infrastructure
c) informational systems
d) transactional systems
e) social media

Ans: d (Hard)
Response: See page 214.

6. This method of IT funding is the most equitable, as the costs associated with IT are based on use. However, it can be difficult and tedious to calculate the usage costs.
a) Allocation
b) Corporate budgeting
c) Usage
d) Distributed
e) Chargeback

Ans: e (Medium)
Response: See page 224.

7. Sam has just purchased 10 new high speed color laser printers for his company. He is very excited because he got a 40% discount and paid only $2,990 for each unit. His boss, Joe, wants to know things such as operating costs, support, overhead, etc. for the printers. Joe wants to know this value:
a) RCO
b) TCO
c) ROI
d) NPV
e) EVM

Ans: b (Hard)
Response: See page 227

8. Activity based costing _____________
a) groups costs into meaningful buckets that are then distributed based on the activity or product they support.
b) is useful for allocating small project work.
c) charges all costs to “cost centers”.
d) considers only initial capital investments.
e) calculates ongoing maintenance costs.

Ans: a (Hard)
Response: See page 227.

9. This financial calculation provides a percentage rate that measures the relationship between the amount the business gets back from an investment and the amount invested.
a) IRR
b) ROI
c) Payback
d) NPV
e) EVA

Ans: b (Medium)
Response: See page 217

10. Scorecards provide a summary of information gathered over a period of time. Another common IT monitoring tool is the _____________.
a) baseline
b) metrics
c) portfolio
d) dashboard
e) monitor

Ans: d (Medium)
Response: See page 221