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Information Technology
CA Certificate Level
MCQ Question Bank

Contains more than 1200 MCQ

Nobel Saha
CA Professional Level
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MCQ of Chapter 1
1. An information system can be an organized combination of …
a) people
b) hardware
c) software
d) communication network
e) data resources
f) policy & procedures
Correct answers are …
a) a, b, c, d, f
b) b, c, d, e, f
c) a, c, d, e, f
d) Above all

2. Information system …… information in an organization.

a) Stores
b) Receives
c) Transforms
d) Distributes
Correct answers are …
a) a, b, c
b) b, c, d
c) a, c, d
d) Above all

3. Which of the followings are recognized as information technology?

a) Hardware
b) Software
c) Network
d) Data management
Correct answers are …
a) a, b, c
b) b, c, d
c) a, c, d
d) Above all

4. How IS will be developed to meet the opportunities of an organization is considered under ……

a) Foundation concept
b) Development processes
c) Management Challenges
d) Above all
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5. How many vital role of IS can perform in business?

a) 2
b) 3
c) 4
d) 5

6. A super shop can keep recorded to run its business by using IS that how much it has closing
inventory, customer’s payment, staffs; payment etc. This is an example of …
a) Support of business process & operations.
b) Support of decision making by employees and managers.
c) Support of strategies for competitive advantage.
d) Above all

7. Information system assists to super shop manager to make decision that which line items should
keep more and which line item should keep less. This is an example of …
a) Support of business process & operations.
b) Support of decision making by employees and managers.
c) Support of strategies for competitive advantage.
d) Above all

8. For gaining a strategic advantage over the competitor, the super shop manager may install touch
screen display monitor that will provide information in details about the products. This is an
example of …
a) Support of business process & operations.
b) Support of decision making by employees and managers.
c) Support of strategies for competitive advantage.
d) Above all

9. The steps of evolution of Information System are given below …

a) Data processing
b) Decision Support
c) Electronic Business & Commerce
d) Management Reporting
e) Strategic and end user support
f) Enterprise Resource planning and Business intelligence
Which of the following flow is correct?
a) a–c–e–b–d–f
b) a–b–d–c–e–f
c) a–d–b–e–c–f
d) a–b–c–d–e–f
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10. In which step of evolution of Information system MIS was innovated?
a) Data processing
b) Decision Support
c) Electronic Business & Commerce
d) Management Reporting

11. In which step of evolution of Information system DSS was born?

a) Data processing
b) Decision Support
c) Electronic Business & Commerce
d) Management Reporting

12. In which step of evolution of Information system EIS was invented?

a) Electronic Business & Commerce
b) Management Reporting
c) Strategic and end user support
d) Enterprise Resource planning and Business intelligence

13. In which step of evolution of Information system an important role named Strategic Information
System was appeared?
a) Electronic Business & Commerce
b) Management Reporting
c) Strategic and end user support
d) Enterprise Resource planning and Business intelligence

14. What helps a company to gain a comparative strategic advantage?

a) Strategic Information System
b) Management Information System
c) Decision Support System
d) Executive Information System

15. At the beginning of which step of evolution of Information system Enterprise Resource
Planning was added?
a) Electronic Business & Commerce
b) Management Reporting
c) Strategic and end user support
d) Enterprise Resource planning and Business intelligence
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16. Fundamental role for Information System is business intelligence (BI), which refers to all
applications and technologies in the organization.
a) True
b) False

17. Business intelligence (BI) can be used to drive strategic business decisions.
a) True
b) False

18. Which of the following works on all the process of internal and external of any enterprise?
a) The Internet
b) The Intranet
c) The Extranet
d) All of the above

19. Which of the followings works on internal communication within an organization such as file
transfer, knowledge sharing?
a) The Internet
b) The Intranet
c) The Extranet
d) All of the above

20. Which of the followings works on external activities such maintain communication with
suppliers customers, investor?
a) The Internet
b) The Intranet
c) The Extranet
d) All of the above

21. The e-business application rely on …

a) Reengineering internal business process.
b) Implementing e-commerce systems with their customer & suppliers.
c) Promoting enterprise collaboration among business teas and workgroups.
d) All of the above

22. Which of the followings are not under Management Support System?
a) Transaction processing systems
b) Process control systems
c) Enterprise collaboration systems
d) Above all
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23. Which of the followings are not under Operation Support System?
a) Management information systems (MIS)
b) Decision support systems (DSS)
c) Executive information systems (EIS)
d) Above all

24. Which of the followings are under both Operation Support System and Management Support
System?
a) Transaction processing systems
b) Process control systems
c) Enterprise collaboration systems
d) Specialized processing systems

25. Which of the followings support the operation of the business?

a) Transaction processing systems
b) Process control systems
c) Enterprise collaboration systems
d) Above all

26. Which of the followings support at the time of managerial decision making of the business?
a) Management information systems (MIS)
b) Decision support systems (DSS)
c) Executive information systems (EIS)
d) Above all

27. Team & workgroup collaboration is the part of …

a) Transaction processing systems
b) Process control systems
c) Enterprise collaboration systems
d) Above all

28. Which of the followings helps at the time of interactive decision support?
a) Management information systems (MIS)
b) Decision support systems (DSS)
c) Executive information systems (EIS)
d) Above all

29. Which of the followings tailor information for executives?

a) Management information systems (MIS)
b) Decision support systems (DSS)
c) Executive information systems (EIS)
d) Above all
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30. Which of the followings support competitive advantage?
a) Expert System
b) Knowledge Management System
c) Strategic Information System
d) Functional Business System

31. Which of the followings support basic business function?

a) Expert System
b) Knowledge Management System
c) Strategic Information System
d) Functional Business System

32. Sales and inventory processing and accounting systems are examples of …
a) Transaction processing systems
b) Process control systems
c) Enterprise collaboration systems
d) Above all

33. How many basic ways are used to process transaction in Transaction Processing System?
a) 2
b) 3
c) 4
d) 5

34. How many basic ways are used to process transaction in Transaction Processing System?
a) Batch processing
b) Real time processing
c) Online processing
Correct answers are …
a) a, b
b) a, c
c) b, c
d) Above all

35. In which types of processing, transactions data are accumulated over a period of time and
processed periodically?
a) Batch processing
b) Real time processing
c) Online processing
Correct answers are …
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a) a
b) a, b
c) b, c
d) Above all

36. In which types of processing, data are processed immediately after a transaction occurs?
a) Batch processing
b) Real time processing
c) Online processing
Correct answers are …
a) a
b) a, b
c) b, c
d) Above all

37. Point-of-sale (POS) systems at many retail stores is an example of …

a) Batch processing
b) Real time processing
c) Online processing
Correct answers are …
a) a
b) a, b
c) b, c
d) Above all

38. Which system can monitor and control the industrial processes?
a) Transaction processing systems
b) Process control systems
c) Enterprise collaboration systems
d) Above all

39. Which of the followings is not an example of Process Control System?

a) petroleum refining
b) videoconferencing groupware systems
c) power generation
d) steel production systems

40. Enterprise collaboration systems can support the … for running the business effectively.
a) team
b) workgroup
c) enterprise communications
d) enterprise collaborations
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Correct answers are …
a) a, b, c
b) b, c, d
c) a, c, d
d) Above all

41. Which of the followings is not an example of Enterprise collaboration systems?

a) e-mail
b) videoconferencing groupware systems
c) chat
d) none of the above

42. Management support system can be divided into …

a) 2 types
b) 3 types
c) 4 types
d) 5 types

43. Which system provides information in the form of reports and displays to managers and many
business professionals?
a) Management information systems (MIS)
b) Decision support systems (DSS)
c) Executive information systems (EIS)
d) Above all

44. Sales managers may use their networked computers and Web browsers to receive the
information about the sales results of their products and access their corporate intranet for daily
sales analysis reports that evaluate sales made by each salesperson. This is an example of …
a) Management information systems (MIS)
b) Decision support systems (DSS)
c) Executive information systems (EIS)
d) Specialized processing systems

45. Which system gives direct computer support to managers during the decision-making process?
a) Management information systems (MIS)
b) Decision support systems (DSS)
c) Executive information systems (EIS)
d) Specialized processing systems
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46. An advertising manager may use Information System to perform how much expense need to
determine for spending or a production manager may use a Information System to decide how
much product to manufacture, based on the expected sales associated with a future promotion and
the location and availability of the raw materials necessary to manufacture the product. This is an
example of …
a) Management information systems (MIS)
b) Decision support systems (DSS)
c) Executive information systems (EIS)
d) Specialized processing systems

47. Which system provides critical information from a wide variety of internal and external sources
and in easy-to-use displays to executives and managers as if they can gain comparative strategic
benefits?
a) Management information systems (MIS)
b) Decision support systems (DSS)
c) Executive information systems (EIS)
d) Specialized processing systems

48. Top executives may use touch-screen terminals to view instantly text and graphics displays that
highlight key areas of organizational and competitive performance. This is an example of …
a) Management information systems (MIS)
b) Decision support systems (DSS)
c) Executive information systems (EIS)
d) Specialized processing systems

49. Which of the followings are not the types of specialized processing systems?
a) Expert systems
b) Knowledge management systems
c) Functional business systems
d) Strategic information systems
Correct answers are …
a) a, b
b) b, c, d
c) None of the above
d) Above all

50. Which of the followings is not an example of Expert systems?

a) credit application advisor
b) process monitor
c) diagnostic maintenance systems
d) none of the above
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51. Knowledge management systems support the … of business knowledge to employees and
managers throughout a company.
a) Creation
b) Organization
c) Dissemination
d) Above all

52. Which of the followings is not an example of Knowledge management systems?

a) intranet access to best business practices
b) sales proposal strategies
c) customer problem resolution systems
d) none of the above

53. Which of the followings focus on operational and managerial applications in support of basic
business functions?
a) Expert systems
b) Knowledge management systems
c) Functional business systems
d) Strategic information systems

54. When more function integrated within an information system is known as …

a) Expert systems
b) Knowledge management systems
c) Functional business systems
d) Cross-functional information system

55. Information systems that support applications in accounting, finance, marketing, operations
management, and human resource management is known as …
a) Expert systems
b) Knowledge management systems
c) Functional business systems
d) Cross-functional information system

56. Which system applies information technology to a firm’s products, services, or business
processes to help it gain a strategic advantage over its competitors?
a) Expert systems
b) Knowledge management systems
c) Functional business systems
d) Strategic information systems
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57. Which of the followings is not an example of Strategic information systems?
a) online stock trading
b) shipment tracking
c) e-commerce Web systems
d) none of the above

58. Which of the followings is not recognized under Business/ IT challenges?

a) Speed and flexibility requirements of product development, manufacturing, and delivery
cycles.
b) Reengineering and cross-functional integration of business processes using internet
technology.
c) Integration of e-business and e-commerce into the organization’s strategies, processes,
structure and culture.
d) Use of the Internet, intranets, extranets and the web as the primary IT infrastructure.

59. Which of the followings is not recognized under Business/ IT Developments?

a) Use of the Internet, intranets, extranets and the web as the primary IT infrastructure.
b) Diffusion of web technology to internetwork employees, customers and suppliers.
c) Global networked computing, collaboration and decision support systems.
d) Reengineering and cross-functional integration of business processes using internet
technology.

60. Which of the followings is not recognized under Business/ IT Goals?

a) Give customers what they want, when and how they want it, at the lowest cost
b) Coordination of manufacturing and business processes with suppliers and customers
c) Marketing channel partnerships with suppliers and distributors.
d) Diffusion of web technology to internetwork employees, customers and suppliers.

61. The process/ steps of developing IS solutions to problems are …

a) Investigation
b) Design
c) Maintain & Control
d) Analysis
e) Implement
Which of the following flow is correct?
a) a–c–e–b–d
b) a–b–c–e–d
c) a–b–d–c–e
d) a–d–b–e–c
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62. A business professional or a manager must keep in touch with the developing information
system solutions and must overview the implemented solutions of IS which is under …
a) Investigation
b) Maintain & Control
c) Analysis
d) Implement

63. Which of the followings is not considered under applications of IT?

a) Customer Relationship Management
b) Human Resource Management
c) Business Intelligence System
d) None of the above

64. Which of the followings is not considered under Potential Harms of IT?
a) Infringements on privacy
b) Inaccurate information
c) Collusion
d) Work stoppages

65. Which of the followings is not considered under Potential Risks of IT?
a) Consumer boycotts
b) Collusion
c) Work stoppages
d) Government intervention

66. Which of the followings is not considered under possible responses of IT?
a) Codes of ethics
b) Incentives
c) Certification
d) Infringements on privacy

67. System is a process that interrelated all relevant components to work together …
a) to achieve any goal
b) to achieve a common goal
c) to achieve a specific goal
d) to achieve a special goal
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68. How many basic functions are there in a system?
a) 2
b) 3
c) 4
d) 5

69. The system concept becomes even more useful by including the following elements …
a) Feedback
b) Control
c) Both of the above
d) None of the above

70. Data about sales performance are …… to a sales manager.

a) Feedback
b) Control
c) Both of the above
d) None of the above

71. Which of the followings involves monitoring and evaluating the feedback to determine whether
a system is moving toward the achievement of its goal?
a) Feedback
b) Control
c) Both of the above
d) None of the above

72. Control helps managers to adjust the performance based on feedback and controlling data.
a) True
b) False

73. A system with feedback and control functions is sometimes called …

a) Expert systems
b) Knowledge management systems
c) Functional business systems
d) Cybernetic system

74. Cybernetic system is …

a) self-monitoring system
b) self-regulating system
c) Both of the above
d) None of the above
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75. Home temperature control system is an example of …

a) Expert systems
b) Knowledge management systems
c) Cybernetic system
d) Cross-functional information system

76. If a system is one of the components of a large system is called …

a) Expert systems
b) Subsystem
c) Cybernetic system
d) Cross-functional information system

77. Which of the following system interacts with others system in its environment?
a) Adaptive System
b) Subsystem
c) Cybernetic system
d) Open system

78. Which of the following system has ability to change itself or its environment to survive?
a) Adaptive System
b) Subsystem
c) Cybernetic system
d) Open system

79. An information system depends on the ……… to perform input, processing, output, storage,
and control activities that transform data resources into information products.
a) resources of people (end users and IS specialists)
b) hardware (machines and media)
c) software (programs and procedures)
d) data (data and knowledge bases)
e) networks (communications media and network support)
Correct answers are …
a) a, b, c, e
b) b, c, d, e
c) a, c, d, e
d) Above all
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80. People who spend most of their time communicating and collaborating in teams and
workgroups and creating, using, and distributing information are known as ……
a) End users
b) Knowledge worker
c) IS specialist
d) Above all

81. People who develop and operate information systems are known as ……
a) End users
b) Knowledge worker
c) IS specialist
d) Above all

82. Which of the followings are not considered as IS specialists?

a) systems analysts
b) software developers
c) systems operators
d) other managerial, technical, and clerical IS personnel
Correct answers are …
a) a, b, c
b) b, c, d
c) a, c, d
d) Above all

83. Hardware resources includes not only machines but also all data media & tangible objects.
a) True
b) False

84. Computer systems consist of …

a) central processing units
b) printers
c) monitors
d) above all

85. Computer peripherals includes …

a) mouse
b) printers
c) magnetic disk drive
d) above all
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86. Software includes…
a) programs
b) procedures
c) a+b
d) none of the above

87. The sets of operating instructions is called…

a) procedures
b) programs
c) a+b
d) none of the above

88. Computer programs direct and control computer hardware.

a) True
b) False

89. The sets of information processing instructions called…

a) Programs
b) Procedures
c) a+b
d) none of the above

90. Which of the followings are the software resources?

a) System software
b) Application software
c) Procedures
d) All of the above

91. System software is an operating system program.

a) True
b) False

92. Which of the followings are the examples of computer operating system?
a) UNIX
b) Microsoft Windows
c) Graphics programs
d) a+b

93. Application software are…

a) Sales analysis
b) Payroll
c) Word processing programs
d) All of the above
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94. Programs that direct processing for a particular use of computers by end users are called…
a) System software
b) Application software
c) Procedures
d) All of the above

95. Which of the followings are the examples of procedures?

a) UNIX
b) Instructions for filling out a paper form
c) Using a software package
d) b+c

96. Data resources are typically…

a) Organized
b) Stored
c) Accessed
d) All of the above

97. Data resource management technologies store data in forms of…

a) Databases
b) Knowledge bases
c) a+b
d) none of the above

98. What are the fundamental resource components of all information systems?
a) Networks
b) Communication technologies
c) a+b
d) none of the above

99. Communications media are…

a) twisted-pair wire
b) coaxial and fiber optic cables
c) microwave
d) satellite wireless technologies
e) cellular
Correct answers are…
a) a, b, c
b) c, d, e
c) b, c, d, e
d) all of the above
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100. Network infrastructures are needed to support the operation and use of communication
network.
a) True
b) False

101. Network infrastructures are…

a) Hardware
b) Software
c) Data technologies
d) All of the above

102. Which of the following activities are recognized under information system activities?
a) Input
b) Output
c) Processing
d) Storage
e) Control
Correct answers are…
a) a, b, c, d
b) a, c, d, e
c) a, b, d, e
d) all of the above

103. Common information products are …

a) messages
b) reports
c) forms
d) graphic images
Correct answers are …
a) a, b, c
b) b, c, d
c) a, c, d
d) all of the above

104. What are the activities in an information system that produce information?
a) Input
b) Output
c) Processing
d) All of the above
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Solutions of chapter 1
1 d 31 d 61 d
2 d 32 a 62 b
3 d 33 a 63 d
4 b 34 d 64 d
5 b 35 a 65 b
6 a 36 c 66 d
7 b 37 c 67 c
8 c 38 b 68 b
9 c 39 b 69 c
10 d 40 d 70 a
11 b 41 d 71 b
12 c 42 c 72 a
13 c 43 a 73 d
14 a 44 a 74 c
15 d 45 b 75 c
16 a 46 b 76 b
17 a 47 c 77 d
18 a 48 c 78 a
19 b 49 c 79 d
20 c 50 d 80 b
21 d 51 d 81 c
22 d 52 d 82 d
23 d 53 c 83 a
24 d 54 d 84 d
25 d 55 d 85 d
26 d 56 d 86 c
27 c 57 d 87 b
28 b 58 d 88 a
29 c 59 d 89 b
30 c 60 d 90 d
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91 a
92 d
93 d
94 b
95 d
96 d
97 c
98 c
99 d
100 a
101 d
102 d
103 d
104 d