Chapter 5 - Information System
Chapter 5 - Information System
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Chapter 5: Information System Introduction to Business
9. Which computer system component is responsible for displaying text and graphics to the user?
A) Scanner
B) Keyboard
C) Screen (Visual Display Unit)
D) Central Processing Unit (CPU)
10. Which computer system component is responsible for reading barcodes for inventory
management?
A) Mouse
B) Keyboard
C) Scanner
D) Printer
11. Which computer system component is responsible for temporarily storing data currently being
processed?
A) Output device
B) Input device
C) Central Processing Unit (CPU)
D) Storage facility
12. What is the primary function of the central processing unit (CPU) in a computer system, besides
processing data?
A) Displaying graphics on the monitor
B) Providing electrical power to the computer
C) Storing data in the computer's memory
D) Managing and executing various tasks simultaneously (multitasking)
13. Which of the following is NOT an input device but can be used to i nteract with a computer
system?
A) Microphone
B) Touchscreen
C) Monitor
D) Graphics tablet
14. Which computer system component is responsible for translating processed data into a human-
readable format, such as text or images?
A) Input device
B) Central Processing Unit (CPU)
C) Output device
D) Storage facility
15. Which output device is primarily responsible for producing a hard copy of documents and
images?
A) Speaker
B) Monitor
C) Printer
D) Projector
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Chapter 5: Information System Introduction to Business
16. In a computer system, what component is responsible for converting electrical signals into
sound waves for audio output?
A) Monitor
B) CPU
C) Speaker
D) Keyboard
17. Which computer system component is responsible for interpreting and executing the
instructions of a computer program?
A) Input device
B) Output device
C) Central Processing Unit (CPU)
D) Storage facility
18. What does computer hardware encompass in addition to the computers themselves?
A) Software components
B) Peripheral equipment
C) Internet connectivity
D) Network cables
19. What has the globalization of the business environment led to in terms of computer usage?
A) Decreased reliance on laptops
B) Reduced need for computer networks
C) Widespread use of portable laptop computers
D) Increased use of supercomputers
20. What is an Intranet system?
A) A private network for internet browsing
B) A system only available to customers
C) A system that looks like the Internet but is only available to employees
D) An external website for company information
21. Which input device is commonly used for typing text and entering commands into a computer?
A) Optical mark reader (OMR)
B) Touch-sensitive screen
C) Scanner
D) Keyboard
22. What type of input device allows users to draw, select, and interact with on-screen objects by
moving a pointer on the screen?
A) Voice data entry (VDE)
B) Magnetic ink character recognition (MICR)
C) Mouse
D) Barcodes
23. Which input device is primarily used for reading characters printed with magnetic ink, often
found on checks and bank documents?
A) Touch pad
B) Optical character recognition (OCR)
C) Magnetic ink character recognition (MICR)
D) Digital camera
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Chapter 5: Information System Introduction to Business
24. What input method involves using a scanning device to capture printed tex t and convert it into
digital text that a computer can process?
A) Optical mark reading (OMR)
B) Voice data entry (VDE)
C) Scanning and optical character recognition (OCR)
D) Barcodes and QR codes
25. Which output device is responsible for displaying text, graphics, and videos to the user?
A) Printer
B) Speaker
C) Monitor
D) Storage device
26. What type of output device is used to produce a hard copy of digital documents and images?
A) Storage device
B) Speaker
C) Projector
D) Printer
27. Which output device is used to produce sound or audio output in a computer system?
A) Monitor
B) Printer
C) Speaker
D) Touch pad
28. Which category of storage devices includes RAM and is used for temporarily storing data that
the computer is currently using?
A) Secondary storage
B) Tertiary storage
C) Offline storage
D) Primary storage (internal memory)
29. What type of storage devices are external to the computer and are typically used for long-term
data storage?
A) Tertiary storage
B) Secondary storage
C) Primary storage (internal memory)
D) Offline storage
30. Which category of storage devices includes devices like tape drives and archival storage used for
backup and long-term offline storage?
A) Primary storage (internal memory)
B) Tertiary storage
C) Secondary storage
D) Offline storage
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Chapter 5: Information System Introduction to Business
31. What is a common example of an input device that is usually integrated into a laptop or
notebook?
A) Touch-sensitive screen
B) Barcode reader
C) Magnetic ink character recognition (MICR)
D) Digital camera
32. What input method involves simulating physical key presses on a screen by touching specific
areas, such as a keyboard image?
A) Optical mark reading (OMR)
B) Voice data entry (VDE)
C) Touch-sensitive screens
D) Barcode scanning
33. Which input method requires specially formatted characters printed in magnetic ink and is
commonly used in the banking industry for cheques and deposit slips?
A) Optical character recognition (OCR)
B) Scanners
C) Magnetic ink character recognition (MICR)
D) Voice data entry (VDE)
34. What input method involves marking a pre-printed form with a pen or typed line in designated
boxes that are then read by a device?
A) Optical mark reading (OMR)
B) Mice and trackballs
C) Scanners
D) Barcodes
35. Which input devices are used for translating text or illustrations printed on paper into a digital
format that computers can use?
A) Mice and trackballs
B) Voice data entry (VDE)
C) Scanners and optical character recognition (OCR)
D) Touch-sensitive screens
36. What type of hand-operated devices use internal sensors to detect motion and control the
cursor on a computer screen?
A) Mice and trackballs
B) Voice data entry (VDE)
C) Touch-sensitive screens
D) Digital cameras
37. What input method involves entering data into a computer system using voice commands via a
microphone?
A) Optical mark reading (OMR)
B) Barcode scanning
C) Voice data entry (VDE)
D) Touch-sensitive screens
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Chapter 5: Information System Introduction to Business
38. What types of codes, known for their fast readability and greater storage capacity, are often
used for product labeling and can be read by electronic readers?
A) Magnetic ink characters
B) Optical marks
C) QR (quick response) codes
D) Barcodes
39. What does EPOS stand for, which is integrated with barcode readers for instant payment for
goods?
A) Electronic Product Ordering System
B) Efficient Point of Sale
C) Electronic Point of Sale
D) Enhanced Payment Online System
40. What type of device captures images and videos in digital form, allowing for easy transfer and
manipulation on a computer?
A) Barcode reader
B) Magnetic ink character recognition (MICR)
C) Digital camera
D) Optical mark reader (OMR)
41. What is the primary function of an output device in a computer system?
A) Providing data and instructions
B) Processing data
C) Receiving and presenting processed data
D) Storing data
42. Which output device is similar to a television screen and provides visual output from a computer
for text and graphics?
A) Printer
B) Monitor
C) Projector
D) Sound card
43. What type of device is commonly used to print computer output onto paper, either in color or
black and white?
A) Sound card
B) Projector
C) Monitor
D) Printer
44. Which output device is responsible for producing sound output in a computer system, often
facilitated by a sound card?
A) Printer
B) Projector
C) Monitor
D) Speakers and headsets
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Chapter 5: Information System Introduction to Business
IQSF IT’S OK
Chapter 5: Information System Introduction to Business
53. The primary purpose of secondary storage (external memory) in a computer system is to archive
rarely accessed information.
A) True
B) False
54. What type of storage media is typically used for archiving and is slower than secondary storage?
A) USB flash drives
B) Floppy disks
C) Blu-ray drives
D) Tertiary storage
55. What is offline storage, and how does it differ from other storage types?
A) Offline storage is used for frequently accessed data.
B) Offline storage is connected to the CPU at all times.
C) Offline storage is physically removed or disconnected and requires human intervention for
access.
D) Offline storage is the same as primary storage.
56. Which component of the computer system uses primary storage (internal memory) for
temporarily storing data during processing?
A) Keyboard
B) Monitor
C) Central Processing Unit (CPU)
D) Printer
57. What does IT primarily focus on?
A) Managing and organizing data
B) Developing and maintaining software
C) Hardware and software infrastructure
D) Analyzing and interpreting data
58. Database Administrator is an example of an IT role.
A) True
B) False
59. What aspect of IT deals with the physical components of computer systems?
A) Networking
B) Software development
C) Hardware
D) Data analysis
60. What is the primary focus of Information Systems (IS)?
A) Managing computer hardware
B) Storing and organizing data
C) Leveraging technology to support business processes
D) Developing software applications
61. Which of the following is a primary role within Information Systems (IS)?
A) Network Technician
B) Software Developer
C) Business Process Analyst
D) Hardware Technician
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Chapter 5: Information System Introduction to Business
62. Which field primarily focuses on technology infrastructure, including hardware and software
components?
A) IT
B) IS
C) They have the same focus
D) Neither IT nor IS focuses on technology infrastructure
63. Which field primarily focuses on using technology to support business operations and decision-
making?
A) IT
B) IS
C) They have the same focus
D) Neither IT nor IS focuses on business operations
64. What is a key distinction between IT and IS?
A) IT involves managing people, while IS focuses on technology.
B) IT focuses on software development, while IS focuses on hardware.
C) IT deals with technology infrastructure, while IS deals with applying technology to
business needs.
D) IT and IS are interchangeable terms with no real difference.
65. Which field is more concerned with the strategic use of technology to achieve business goals?
A) IT
B) IS
C) Both IT and IS equally
D) Neither IT nor IS
66. What does Information Technology (IT) primarily involve?
A) Collecting and processing data
B) Using computers and telecommunications equipment to manipulate data
C) Managing business operations
D) Decision-making processes
67. Which technologies are typically associated with Information Technology (IT)?
A) Television and radio
B) Telephone and radio
C) Computers and computer networks
D) Data processing machines
68. What is the main focus of Information Technology (IT)?
A) Software and hardware systems
B) Business operations and management
C) Collecting and distributing data
D) Interaction with technology
69. What does an Information System (IS) primarily encompass?
A) Using computers to manipulate data
B) Complementary networks of software and hardware for data processing
C) Managing telecommunications equipment
D) Decision-making processes
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Chapter 5: Information System Introduction to Business
IQSF IT’S OK
Chapter 5: Information System Introduction to Business
IQSF IT’S OK
Chapter 5: Information System Introduction to Business
IQSF IT’S OK
Chapter 5: Information System Introduction to Business
96. There are three types of system adaptations: 1. Deterministic System, 2. Probabilistic System &
3. Self-Organizing System
A) True
B) False
97. In a deterministic system, how is system behavior determined?
A) By assigning probabilities to future events
B) By using predetermined rules
C) By relying on self-organizing principles
D) By adapting to the environment
98. Which type of system assigns probabilities to future events, making its behavior less
predictable?
A) Deterministic systems
B) Probabilistic systems
C) Self-organizing systems
D) Closed systems
99. What is an example of a deterministic system?
A) A business forecasting sales based on past evidence
B) A machine following a set of predefined rules
C) Trade union negotiations adapting to changing circumstances
D) A computer program with unpredictable outputs
100. Which type of system is the most complex and continually changes to adapt to the
environment?
A) Deterministic systems
B) Probabilistic systems
C) Self-organizing systems
D) Closed systems
101. What do self-organizing or cybernetic systems heavily rely on for interaction?
A) Predefined rules
B) Probabilistic predictions
C) Interaction with people
D) Closed-loop feedback
102. Open loop control has inbuilt control very much like a thermostat in a heating system, they are
not responsive to changes in the environment.
A) True
B) False
103. Batch processing is the collection of a group of similar transactions over a period of time, and
their processing at a single time as a batch.
A) True
B) False
104. Transaction Processing System is used at the middle level of an organization
A) True
B) False
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Chapter 5: Information System Introduction to Business
105. An ES is a computer program that simulates the judgment and behavior of a human or an
organization that has expert knowledge and experience in a particular field.
A) True
B) False
106. Management Information Systems used at the top level of the organization are usually
unstructured and strategic in nature.
A) True
B) False
107. What is the main purpose of control in an information system?
A) To monitor the environment
B) To maintain a stable system
C) To adapt to dynamic changes
D) To create a closed-loop system
108. Which type of control system is not responsive to changes in the environment and is suitable for
stable systems?
A) Closed loop control
B) Open loop control
C) Dynamic control
D) Adaptive control
109. In an open loop control system, where does control input come from?
A) It is generated internally within the system.
B) It is provided by external sensors and interaction with users.
C) It is predetermined and unchangeable.
D) It is responsive to changes in the environment.
110. What is the role of a sensor in a control system?
A) It measures the output from the system and determines a new value.
B) It sets predetermined limits for the control system.
C) It compares the new value with that of the standard.
D) It affects the feedback into the system.
111. What does a comparator do in a control system?
A) It measures the system's input.
B) It compares the new value with that of the standard.
C) It processes the control output.
D) It interacts with users to control the system.
112. What is the standard in a control system?
A) The predetermined limit set within the system.
B) The sensor's measurement of the output.
C) The feedback provided by the effector.
D) The dynamic changes in the environment.
113. What is the role of an effector in a control system?
A) It measures the system's input.
B) It compares the new value with that of the standard.
C) It processes the control output.
D) It affects the feedback into the system.
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Chapter 5: Information System Introduction to Business
114. What is the primary purpose of a Database Management System (DBMS) in an Information
System?
A) To process raw data into meaningful information
B) To manage electronic filing systems
C) To enter, store, organize, select, and retrieve data in a database
D) To secure data and information
115. Is the primary purpose of a Database Management System (DBMS) in an Information System to
process raw data into meaningful information?
A) True
B) False
116. What role does integration play in an Information System?
A) It provides a holistic view of data and information within an organization.
B) It secures data and ensures privacy.
C) It manages electronic filing systems.
D) It processes raw data into meaningful information.
117. What is the function of a network in an Information System?
A) To process raw data
B) To manage electronic filing systems
C) To provide a means for data and information transmission and sharing
D) To ensure data security
118. What does a Database in an Information System primarily do?
A) Process raw data into meaningful information
B) Store and organize data and information
C) Manage electronic filing systems
D) Provide a holistic view of data within an organization
119. Which element of an Information System focuses on turning raw, unorganized data into
meaningful and useful information?
A) Data
B) Database
C) Integration
D) Security and Privacy
120. What does Security and Privacy aim to ensure in an Information System?
A) Data integration
B) Data processing
C) Data confidentiality and protection
D) Data storage
121. In an Information System, which software is responsible for entering, storing, organizing,
selecting, and retrieving data in a database?
A) Data
B) Database
C) Database Management System (DBMS)
D) Integration software
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Chapter 5: Information System Introduction to Business
IQSF IT’S OK
Chapter 5: Information System Introduction to Business
130. What type of DBMS is known for its flexibility and ability to handle complex relationships among
data?
A) Relational database
B) NoSQL database
C) Object-Oriented database
D) Cloud-based database
131. Which type of DBMS is suitable for managing unstructured or semi-structured data and is known
for its scalability?
A) Columnar database management system (CDBMS)
B) In-memory database management system (IMDBMS)
C) NoSQL database management system
D) Network database management system
132. What are examples of popular DBMS types known for their ability to handle large volumes of
data and high performance?
A) Hierarchical and Network databases
B) Cloud-based and In-memory databases
C) Relational and Object-Oriented databases
D) Columnar and NoSQL databases
133. What is a computer network?
A) A single computer system
B) A group of computer systems linked by communication channels
C) A type of software application
D) A database management system
134. What is the primary purpose of computer networks in businesses?
A) To store data
B) To replace computer systems
C) To share data and information
D) To transmit audio and video
135. Which of the following is the most well-known computer network that connects millions of
users worldwide?
A) Intranet
B) Extranet
C) Local Area Network (LAN)
D) The Internet
136. What is the primary function of the World Wide Web (internet) on computer networks?
A) Sharing software applications
B) Online booking systems
C) Sharing devices like printers
D) Transmitting data and information over web pages
137. In a computer network, what does email primarily facilitate?
A) Sharing of printers
B) Online booking of flights
C) Instant messaging
D) Electronic communication through messages
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Chapter 5: Information System Introduction to Business
IQSF IT’S OK
Chapter 5: Information System Introduction to Business
146. Which network configuration is a combination of two or more simpler network topologies?
A) Star network
B) Ring network
C) Bus network
D) Tree network
147. In client-server computing, what is the role of the client?
A) Managing network resources
B) Providing network services
C) Running an application on a personal computer or workstation
D) Routing messages within the network
148. What is a server in the context of client-server computing?
A) An application on a personal computer
B) A machine dedicated to providing network resources
C) A client that manages network functions
D) A routing device within the network
149. How does a client access a server's capabilities in client-server computing?
A) Only specific clients designated by the server can access its capabilities.
B) Any user on the network can access the server's capabilities.
C) Clients and servers are isolated from each other and do not interact.
D) Servers can access clients' capabilities, but not vice versa.
150. What is the primary function of a file server in client-server computing?
A) Managing network resources
B) Routing messages within the network
C) Managing and controlling the routing of messages
D) Managing data files accessible to network users
151. Which type of server is responsible for routing messages from terminals and equipment to
various parts of the network?
A) File server
B) Network server
C) Print server
D) E-mail server
152. What is a common function of e-mail servers in client-server computing?
A) Managing network resources
B) Storing files and data
C) Processing database queries
D) Handling electronic mail communication
153. In client-server computing, what can a print server be used for?
A) Managing network resources
B) Routing messages within the network
C) Managing and controlling the routing of messages
D) Managing print jobs and printers on the network
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Chapter 5: Information System Introduction to Business
IQSF IT’S OK
Chapter 5: Information System Introduction to Business
162. Which level of decision-making is typically supported by an Executive Information System (EIS)?
A) Operational
B) Tactical
C) Strategic
D) All of the above
163. What is the primary function of an Expert System (ES) in an organization?
A) Automating routine tasks
B) Supporting managerial decisions
C) Providing strategic insights
D) Mimicking human expertise in a specific domain
164. Which type of information system is used to improve the flow of communication and streamline
office tasks?
A) Transaction Processing System (TPS)
B) Decision Support System (DSS)
C) Office Automation System
D) Expert System (ES)
165. Which level of decision-making focuses on day-to-day operational activities and tasks?
A) Operational
B) Tactical
C) Strategic
D) Transactional
166. Which information system is designed to assist middle managers in making decisions related to
resource allocation and planning?
A) Executive Information System (EIS)
B) Transaction Processing System (TPS)
C) Expert System (ES)
D) Management Support System (MSS)
167. What is the primary goal of integrating information systems within a company?
A) To create separate systems for each department's specific problems
B) To streamline departmental operations independently
C) To achieve coordinated functionality across all systems
D) To isolate departmental data from one another
168. Which type of system is becoming an integral part of business strategy and often integrates
human resources, operations, and technology?
A) Transaction Processing System (TPS)
B) Management Support System (MSS)
C) Enterprise Resource Planning (ERP) system
D) Decision Support System (DSS)
169. What is the purpose of an integrated finance system?
A) To manage only accounts payable and receivable
B) To handle sales orders and customer records
C) To link various underlying modules and functions together
D) To focus solely on inventory control
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Chapter 5: Information System Introduction to Business
IQSF IT’S OK
Chapter 5: Information System Introduction to Business
178. Which of the following is a typical use of Data Warehouses within an MSS?
A) Managing routine transactions
B) Enhancing customer relationships
C) Gathering, securing, and analyzing data for various purposes
D) Processing data into useful information
179. What type of decisions does a Management Information System (MIS) typically support?
A) Unstructured decisions
B) Highly analytical decisions
C) Structured decisions
D) Random decisions
180. Which of the following best describes the focus of a Management Information System (MIS)?
A) External market analysis
B) Analytical capability for complex decisions
C) Reporting on existing operations
D) Data gathering and storage
181. What is a key characteristic of an MSS in terms of flexibility?
A) Highly flexible and adaptable to any data format
B) Relatively inflexible with little analytical capability
C) Supports unstructured decisions with ease
D) Focused on external rather than internal information
182. In an MSS, what type of information is typically processed and reported?
A) Random data entries from external sources
B) Historical and current data in structured formats
C) Unstructured data for complex analysis
D) Data with an external market focus
183. What is the primary purpose of a Decision Support System (DSS) in an organization?
A) To automate routine transactions
B) To provide quantitative data and predictive models for decision-making
C) To manage customer relationships
D) To process real-time data for online users
184. How does a DSS assist managers in decision-making?
A) By automating all decision-making processes
B) By providing real-time data analysis
C) By using interactive computer models to describe real-world processes
D) By focusing solely on historical data
185. In a DSS, what type of data does it primarily use from the internal database?
A) Historical data
B) Structured data
C) External market data
D) Unstructured data
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Chapter 5: Information System Introduction to Business
186. What is a key function of a DSS when answering "what if" questions?
A) It creates spreadsheets to show potential changes.
B) It relies on external market data for predictions.
C) It enables managers to enter specific values for modeling.
D) It automates all decision-making processes.
187. How do DSS models assist managers in making decisions?
A) By providing only historical data for reference
B) By automatically generating decisions without user input
C) By using formulas and equations for mathematical modeling
D) By using unstructured data for analysis
188. What level of management is typically served by a Decision Support System (DSS)?
A) Strategic
B) Operational
C) Tactical
D) Executive
189. Which of the following best describes the user interface of a DSS?
A) It is primarily focused on data management.
B) It contains a natural language interpreter for queries.
C) It does not support mathematical modeling.
D) It is separate from data management software.
190. What is the primary purpose of an Executive Information System (EIS) in an organization?
A) To automate routine transactions
B) To provide specific information for strategic decisions by executives
C) To manage customer relationships
D) To process real-time data for online users
191. How does an EIS differ from a Decision Support System (DSS)?
A) EIS focuses on operational decisions, while DSS focuses on strategic decisions.
B) EIS tends to be more backward-looking, while DSS is forward-looking.
C) EIS uses simple user interfaces, while DSS uses complex modeling.
D) EIS emphasizes unstructured decision-making, while DSS emphasizes structured decisions.
192. What type of data does an EIS incorporate for executive decision-making?
A) Historical and current data only
B) Only internal data
C) Both internal and external data
D) Unstructured data
193. How does an EIS typically present information to executives?
A) Through detailed textual reports
B) Through complex mathematical models
C) Through graphical displays and executive summary dashboards
D) Through automated decision-making processes
IQSF IT’S OK
Chapter 5: Information System Introduction to Business
IQSF IT’S OK
Chapter 5: Information System Introduction to Business
IQSF IT’S OK