Question 1

The key to sustaining a competitive advantage is using faster computers, more memory, and larger hard drives.

Accepted Answer

A) True 
 B)False

Question 2

One of the most common misunderstandings about information is that it is easy and cheap to retrieve after a company has it.

Accepted Answer

A) True 
 B)False

Question 3

Alex Timbers, a wood supplier, receives an order of 10 wooden logs from a furniture manufacturing company. The client brief mentioned that the logs should be made of teak wood and be identically sized. After receiving the order, the quality specialist of the furniture manufacturer observed that the logs were too big to be used for building furniture. In this scenario, it is likely that the information provided by the furniture manufacturing company to Alex Timbers was _____.

Accepted Answer

A)  untimely 
B)  irrelevant 
C)  inaccurate 
D)  incomplete

Question 4

Kandriva, a fitness equipment manufacturer, runs a small-scale customer service center with thirty customer service representatives. The company invests around $5000 annually toward repair and maintenance of telephones and telephone lines catering to its customer service center. In this scenario, it is evident that Kandriva incurs _____.

Accepted Answer

A)  communication cost 
B)  processing cost 
C)  storage cost 
D)  retrieval cost

Question 5

A(n)__________stores huge amounts of data that have been prepared for data mining analysis by being cleaned of errors and redundancy.

Accepted Answer

A)  operational data store 
B)  data warehouse 
C)  data lake 
D)  master data store

Question 6

ABD Tech has invested $20 million to install business intelligence software (BIS) at all of its branches across the globe so that it can access stored information in its servers for business analysis and decision making purposes. In this scenario, the cost incurred by ABD Tech is an example of _____.

Accepted Answer

A)  acquisition cost 
B)  processing cost 
C)  storage cost 
D)  retrieval cost

Question 7

Expert systems do not permit nonexpert employees to draw on the expert knowledge base to make decisions.

Accepted Answer

A) True 
 B)False

Question 8

Data and information are the same as knowledge.

Accepted Answer

A) True 
 B)False

Question 9

In _____, the different purchasing and ordering applications in companies interact automatically without any human input.

Accepted Answer

A)  electronic data interchange 
B)  a corporate portal 
C)  collaborative decision-making software 
D)  an intranet

Question 10

Kamara Jobs, a recruitment company, decides to launch its own global online application. It paid $200,000 to obtain the proven technology required to launch this application from an information technology firm. In the context of the costs of useful information, Kamara Jobs incurred _____.

Accepted Answer

A)  processing cost 
B)  retrieval cost 
C)  acquisition cost 
D)  storage cost

Question 11

Estelle Inc., a manufacturer of stationery products, decides to supply free stationery box sets to all the schoolgoing children in the town of Belwick. The company asks the local authorities to provide information about the number of schoolgoing children in the town. However, during the delivery of the boxes, Estelle Inc. realizes that it is short of approximately 100 boxes. If Estelle Inc. manufactured the exact number of boxes stated by the local authorities, it can be concluded that the information provided by the local authorities was _____.

Accepted Answer

A)  inaccurate 
B)  incomplete 
C)  irrelevant 
D)  untimely

Question 12

Verdure Westerns, a retailer, recently employed a unique data management system that automatically transfers order information to the relevant vendor. This system enables the company to smoothly convey information without any manual effort, thereby reducing the labor costs of the company. By employing this new data management system, Verdure Westerns has most likely achieved _____.

Accepted Answer

A)  competitive inertia 
B)  strategic dissonance 
C)  first-mover advantage 
D)  second-mover advantage

Question 13

Which of the following statements is true of affinity patterns?

Accepted Answer

A)  They help identify database elements that are different. 
B)  They occur when two or more database elements tend to occur together in a significant way. 
C)  They can solely be identified through supervised data mining. 
D)  They occur when three or more database elements occur together in a significant pattern.

Question 14

In the context of useful information, _____ transforms stored, unstructured data in real time into meaningful information for business analysis and decision making.

Accepted Answer

A)  business intelligence software 
B)  optical character recognition software 
C)  an executive information system 
D)  a virtual private network

Question 15

Unidice, an information technology firm, recently installed a new data system that provides seamless access to data. This data system has a higher storage capacity and processing speed than other data systems available in the market. Although the data system can be acquired in the future by other companies, it has presently enabled Unidice to process its data faster and in a more economical manner than its competitors. It is evident that Unidice has achieved _____.

Accepted Answer

A)  competitive inertia 
B)  first-mover advantage 
C)  vertical integration 
D)  quality assurance

Question 16

Jack found an old photograph of his family. He wanted to upload the picture as a digital image on a social networking website. In this scenario, which of the following can help Jack convert the photograph into a digital image?

Accepted Answer

A)  A bar coding device 
B)  A digital printing software 
C)  A radio frequency identification tag 
D)  An electronic scanner

Question 17

_____ usually begins with the user telling the data mining software to look and test for specific patterns and relationships in a data set.

Accepted Answer

A)  Undirected data mining 
B)  Descriptive data mining 
C)  Supervised data mining 
D)  Unsupervised data mining

Question 18

KST Mart has large amounts of customer data. To understand customer purchase behavior, the company uses a process that automatically discovers correlations in the collected data. Through this process, the company learns that people who buy bread, typically also buy a packet of butter. As a result, the manager of the supermarket places butter near the shelf that stocks bread. In this scenario, KST Mart has most likely used _____ to process information.

Accepted Answer

A)  data integration 
B)  data mining 
C)  bar coding 
D)  radio frequency tagging

Question 19

A(n) _____ allows companies to exchange information and conduct transactions by purposely providing outsiders with direct, password-protected, web browser-based access to authorized parts of a company's information system.

Accepted Answer

A)  extranet 
B)  corporate portal 
C)  executive information system 
D)  intraweb

Question 20

Magnira Corp., a small-scale e-learning firm, recently bought a three-year license of a cloud-based software. The software provides email services and social networking services on a secure platform. In this scenario, it is evident that Magnira Corp. has incurred _____.

Accepted Answer

A)  communication cost 
B)  acquisition cost 
C)  processing cost 
D)  retrieval cost

Exam 17: Managing Information

The key to sustaining a competitive advantage is using faster computers, more memory, and larger hard drives.

One of the most common misunderstandings about information is that it is easy and cheap to retrieve after a company has it.

A(n) __________stores huge amounts of data that have been prepared for data mining analysis by being cleaned of errors and redundancy.

Expert systems do not permit nonexpert employees to draw on the expert knowledge base to make decisions.

Data and information are the same as knowledge.

In _____, the different purchasing and ordering applications in companies interact automatically without any human input.

Kamara Jobs, a recruitment company, decides to launch its own global online application. It paid $200,000 to obtain the proven technology required to launch this application from an information technology firm. In the context of the costs of useful information, Kamara Jobs incurred _____.

Which of the following statements is true of affinity patterns?

In the context of useful information, _____ transforms stored, unstructured data in real time into meaningful information for business analysis and decision making.

Jack found an old photograph of his family. He wanted to upload the picture as a digital image on a social networking website. In this scenario, which of the following can help Jack convert the photograph into a digital image?

_____ usually begins with the user telling the data mining software to look and test for specific patterns and relationships in a data set.

A(n) _____ allows companies to exchange information and conduct transactions by purposely providing outsiders with direct, password-protected, web browser-based access to authorized parts of a company's information system.

Magnira Corp., a small-scale e-learning firm, recently bought a three-year license of a cloud-based software. The software provides email services and social networking services on a secure platform. In this scenario, it is evident that Magnira Corp. has incurred _____.