AIS

Question 1

1. Closed database architecture is
   a. a control technique intended to prevent unauthorized access from trading partners.
   b. a limitation inherent in traditional information systems that prevents data sharing.
   c. a data warehouse control that prevents unclean data from entering the warehouse.
   d. a technique used to restrict access to data marts.
   e. a database structure that many of the leading ERPs use to support OLTP applications.

Answer 1

b. a limitation inherent in traditional information systems that prevents data sharing.

Question 2

2. Each of the following is a necessary element for the successful warehousing of data EXCEPT
   a. cleansing extracted data.
   b. transforming data.
   c. modeling data.
   d. loading data.
   e. all of the above are necessary.

Answer 2

e. all of the above are necessary.

Question 3

3. Which of the following is typically NOT part of an ERP’s OLAP applications?
   a. decision support systems
   b. information retrieval
   c. ad hoc reporting/analysis
   d. logistics
   e. what-if analysis

Answer 3

d. logistics

Question 4

4. There are a number of risks that may be associated with ERP implementation. Which of the following was NOT stated as a risk in the chapter?
   a. A drop in firm performance after implementation because the firm looks and works 580 differently than it did while using a legacy system.
   b. Implementing companies have found that staff members, employed by ERP consulting firms, do not have sufficient experience in implementing new systems.
   c. Implementing firms fail to select systems that properly support their business activities.
   d. The selected system does not adequately meet the adopting firm’s economic growth.
   e. ERPs are too large, complex, and generic for them to be well integrated into most company cultures.

Answer 4

e. ERPs are too large, complex, and generic for them to be well integrated into most company cultures.

Question 5

5. Which statement is NOT true?
   a. In a typical two-tier client-server architecture, the server handles both application and database duties.
   b. Client computers are responsible for presenting data to the user and passing user input back to the server.
   c. Two-tier architecture is for local area network applications where the demand on the server is restricted to a relatively small population of users.
   d. The database and application functions are separated in the three-tier model.
   e. In three-tier client-server architectures, one tier is for user presentation, one is for data-
   base and applications access, and the third is for Internet access.

Answer 5

e. In three-tier client-server architectures, one tier is for user presentation, one is for data-
base and applications access, and the third is for Internet access.

Question 6

6. Which statement is NOT true?
   a. Drill-down capability is an OLAP feature of data mining tools available to the user.
   b. The data warehouse should be separate from operational systems.
   c. Denormalization of data involves dividing the data into very small tables that support detailed analysis.
   d. Some decisions supported by a data warehouse are not fundamentally different from those that are supported by traditional databases.
   e. Data cleansing involves transforming data into standard business terms with standard data values.

Answer 6

c. Denormalization of data involves dividing the data into very small tables that support detailed analysis.

Question 7

7. Which statement is LEAST accurate?
   a. Implementing an ERP system has more to do with changing the way that an organization does business than it does with technology.
   b. The phased-in approach to ERP implementation is particularly suited to diversified organizations whose units do not share common processes and data.
   c. Because the primary reason for implementing an ERP is to standardize and integrate operations, diversified organizations whose units do not share common processes and data do not benefit and tend not to implement ERPs.
   d. To take full advantage of the ERP process, reengineering will need to occur.
   e. A common reason for ERP failure is that the ERP does not support one or more important
   business processes of the organization.

Answer 7

e. A common reason for ERP failure is that the ERP does not support one or more important
business processes of the organization.

Question 8

8. SAP, one of the leading ERP producers, makes several modules available to adopters. Which of the following is not a SAP module?
   a. Business Process Support
   b. Internet Development Support
   c. Logistics
   d. E-Commerce Support
   e. Human Resources

Answer 8

b. Internet Development Support

Question 9

9. Auditors of ERP systems
   a. need not be concerned about segregation of duties because these systems possess strong computer controls.
   b. focus on output controls such as independent verification to reconcile batch totals.
   c. are concerned that managers fail to exercise adequate care in assigning permissions.
   d. do not see the data warehouse as an audit or control issue at all because financial records are not stored there.
   e. need not review access levels granted to users because these are determined when the system is configured and never change.

Answer 9

c. are concerned that managers fail to exercise adequate care in assigning permissions.

Question 10

10. Which statement is most correct?
    a. SAP is more suited to service industries than manufacturing clients.
    b. J. D. Edwards’s ERP is designed to accept the best-practices modules of other vendors.
    c. Oracle evolved from a human resources system.
    d. PeopleSoft is the world’s leading supplier of software for information management.
    e. SoftBrands provides enterprise software for the hospitality and manufacturing sectors.

Answer 10

e. SoftBrands provides enterprise software for the hospitality and manufacturing sectors.