MCQ’s for Practice

Disclaimer*:
These are questions collated from different sources to help
you test your conceptual knowledge.
Introduction to Information System
 Questions

1. BPR stands for:

a) Business Process Revolution.
.
b) Business Processing Review.
c) Business Processing Re-engineering.
d) None of the above.

2. Main objective of Business process redesign is

a) Elimination of existing process
b) Designing a new process
c) Improving the current system
d) Conducting business management effectively
3. Which of the following options best describes a computer based information system?
a) System where computer is used to turn data into information and distributed with the help of network protocols.
b) System for inputting data and distributing the same to all the levels of Management.
c) System for storing and processing data
d) Computer is used to process data

4. What technology can be used by a manger to count the inventory in the warehouse without physically counting it ?
a) Bluetooth
b) RFID
c) Barcode
d) Optical Mark Reader

5.Which type of software is focussed on supporting communication, collaboration and coordination?

a. CRM software
b. E-business software
c. SCM software
d. Groupware
 Answers

1. c

2. c

3. a

4. B

5. d
Components of Information Technology
 Questions
1. The primary purpose of an operating system is
a) To make the most efficient use of the computer hardware
b) To allow people to use the computer
c) To keep system performers employed
d) To make computers fast

2. Converting raw data in more meaningful form is known as

a) Processing
b) Conversion
c) Calculation
d) Organizing

3. One of the following is an example of information.

a) sales records
b) employees spouse names
c) pattern of sales in a day
d) students date of birth
4. Computer programs that govern the operation of a computer system are called _____________.
a) feedback
b) feedforward
c) software
d) transaction processing systems

5. The hardware component known as an output device is:

a) Keyboard.
b) Monitor.
c) RAM.
d) Hard-disk.
e) Processor.

6. The hardware component known as an input device is:

a) RAM.
b) Hard-disk.
c) Monitor.
d) Processor.
e) Keyboard.
 Answers

1. a
2. a
3. c
4. c
5. b
6. e
Networking Concepts
1. A client-server system is
a) A networked arrangement of PCs and server
b) A standalone PC
c) A standalone PC and standalone server
d) A data transfer protocol

2. A client computer is used to centrally store information and applications and in an organization for shared
access.
(a) True
(b) False
1. a
2.a
Databases
 Questions

1. Which of the following helps organizations to systematically manage important business data for further
processing?
a) Business Analytics
b) Information Systems
c) Data Warehouse
d) Database Management System

2. An information-analysis tool that involves the automated discovery of patterns and relationships in a data
warehouse is called _______________.
a) A data mart
b) data mining
c) predictive analysis
d) business intelligence
3. ETL stands for which of the following
a) Extraction, Transformation, and Loading
b) Extraction, Transformation, and Levelling
c) Extraction, Transformation, and Landing
d) Extraction, Transformation, and Locking

4. An information-analysis tool that involves the automated discovery of patterns and relationships in a data warehouse is
called _______________.
a. A data mart
b. data mining
c. predictive analysis
d. business intelligence

5. BI stands for
(a) Business Integration
(b) Business Intelligence
(c) Backward Integration
(d) None of the above
 Answers

1. d
2. b
3. A
4. B
5. b
Types of Information Systems
 Test Yourself !

1. TPSs are the basic business systems that serve which level of the organization
(a) Senior Management
(b) Operational staff
(c) Middle Management
(d) Knowledge Management

2. Systems that produce predefined reports for management

(a) DSS
(b) MIS
(c) EIS
(d) TPS

3. MIS work with inputs of

(a) High Volume Data
(b) Low Volume Data
(c) Summary reports
(d) Senior Managers

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 Test Yourself !

4. In batch processing :
(a) Transactions are processed immediately in batches
(b) Transactions are accumulated in batches until it is time to process them
(c) Transactions are processed by arrays of multiple , less expensive servers
(d)Transactions are processed by multiple , less expensive workstations

5. What type of device gathers data and converts it in to electronic form to be used by computer ?
(a) Input device
(b) Output device
(c) Optical Storage
(d) Magnetic Storage

6. Important characteristics of TPS.

(a) Rapid Response
(b) Reliability
(c) Controlled Processing
(d) All of the above

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 Answers

1. B
2. B
3. A
4. B
5. A
6. d
Enterprise Resource Planning
 Questions

1. Which of the following is a primary benefit of implementing an ERP system?

a) elimination of inefficient systems
b) easing adoption of improved work processes
c) improving access to data for operational decision making
d) all of the above .

2. An enterprise is a system of …………..who work towards achieving common goals.

a) People
b) Processes
c) Machines
d) Software

3. _____ is an integrated system that combines all the functions of an organization through a common data platform, while
SCM is restrained to the adequate supply of products so that they can be delivered to customers on time.
a) ERP
b) CRM
c) HRIS
d) Knowledge Management
4. The advantages of an ERP system include :
a) Reduced overall costs
b) Increased transparency
c) Enhanced decision making.
d) Improved supplier performance
e) All the above
 Answers

1.D
2.A
3.A
4.e
 Test Yourself !

1. ERP systems integrate several data sources and processes into a unified system
• (a) True
• (b) False

2. Which of the following is a primary benefit of implementing an ERP system?

a. elimination of inefficient systems
b. easing adoption of improved work processes
c. improving access to data for operational decision making
d. all of the above

3. Benefits achieved by implementing ERP package

(a) Greater accuracy of information with detailed content, better presentation, fully satisfactory for the Auditors
(b) Improved Cost Control
(c) Faster response and follow p on customers
(d) All of the above

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1. True
2. D
3. d
Customer Relationship Management
 Test Yourself !

1. CRM relates to
(a) Sales Force Automation
(b) eCRM or Web based CRM
(c) Customer service
(d) All of the above
(e) None of the above

2. Using CRM business can

(a) Make call centers more efficient
(b) Have more dependency on data
(c) Helps in increasing in time for problem resolution
(d) All of the above

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• 1. d
• 2. d
Building and Deploying an
Information System
1. What involves creating or acquiring the various system components (hardware, software, databases, etc.)
defined in the design step, assembling them, and putting the new system into operation?
a) systems implementation
b) systems review
c) systems development
d) systems design

2. Unit Testing is
a) Includes all the preparations for the series of tests to be performed on the system
b) Performed at the clients site
c) Test each program separately
d) Provides the final certification that the system is ready to be used
3 SDLC stands for
a) Software/System Development Life Cycle
b) Software Developer Life Cycle
c) Support Development Life Cycle
d) None of these
4. SRS stands for
a) System Requirement Specification
b) Software Required Specimen
c) Software Requirement Specifications
d) None of these
5. …………………… describes what a system, should do to meet the information needs of users.
a) Implementation
b) Testing
c) Planning
d) System Design
 Answers

• 1-d
• 2-c
• 3-b
• 4-c
• 5-c
Mix Bag !
1. Cross- selling is the selling of higher-priced products to existing customers (True/False)

2. The Data mining functionality that reveals the difference between the purchase of a typical customer within the
last and current month is known as
a) Market Segmentation
b) Trend Analysis
c) Interactive Marketing
d) Direct Marketing

3. TPS stand for

(a) Transnational Processing Systems
(b) Transaction processing System
(c) Total Process System
(d) None of the above
 Answers

• 1- False
• 2-b
• 3-b
4. A network that links business with its suppliers , customers and other business partners is called
a) Intranet
b) Extranet
c) Internet
d) None of the above

5. Strategic Information is required by

a) Middle managers
b) Line managers
c) Top managers
d) All workers
 Answers

• 4- b
• 5-c
6. In mobile phone manufacturing the following type of information is strategic
a) Decision on introducing a new model
b) Scheduling production
c) Assessing competitor mobile phones
d) Computing sales tax collected

7. In a hospital information system the following type of information is operational

a) Opening a new children’s’ ward
b) Data on births and deaths
c) Preparing patients’ bill
d) Buying an expensive diagnostic system such as CAT scan
 Answers

• 6-a
• 7-c
8. Data mining is used to aid in
a) Operational management
b) Analysing past decision made by managers
c) Detecting patterns in operational data
d) Retrieving archival data

9. Decision support systems are used for

a) Management decision making
b) Providing tactical information to management
c) Providing strategic information to management
d) Better operation of an organization
 Answers

• 8-c
• 9-a
10. Batch processing is used when
i) response time should be short
ii) data processing is to be carried out at periodic intervals
iii) transactions are in batches
iv) transactions do not occur periodically

a i ,ii
b i ,iii,iv
c ii ,iii
d i , ii ,iii

Answer c
11. Information requirements of an organization can be determined by
a) Interviewing managers and users and arriving at the requirements based on consensus
b) Finding out what similar organizations do
c) Telling organization what they need based on your experience
d) Sending a questionnaire to all employees of the organization
e) All the above

12. A management information system is one which

a) Is required by all managers of an organization
b) Processes data to yield information of value in tactical management
c) Provides operational information
d) Allows better management of organizations

Answer : 11 – e
Answer 12- b
13. Match quality of information and how it is ensured using the following list
• QUALITY HOW IS IT ENSURED ?
(i)Brief (iv) Unpleasant information not hidden
(ii)Relevant (v) Summarize relevant information
(iii)Trustworthy (vi) Understands user needs
• a (ii) and (vi)
• b (i) and (iv)
• c (iii) and (v)
• d (ii) and (iv)

Answer: 13-a
14. Match and find best pairing for a Human Resource Management System
• (i)Policies on giving bonus (iv)Strategic information
• (ii)Absentee reduction (v)Tactical information
• (iii)Skills inventory (vi)Operational Information
• a (i) and (v)
• b (i) and (iv)
• c (ii) and (iv)
• d (iii) and (v)

• Answer 14 - b
15. A computer based information system is needed because
(i) The size of organization have become large and data is massive
(ii) Timely decisions are to be taken based on available data
(iii) Computers are available
(iv) Difficult to get clerks to process data
a) (ii) and (iii)
b) (i) and (ii)
c) (i) and (iv)
d) (iii) and (iv)

Answer 15- b