Information Systems Management (C724)
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Free Information Systems Management (C724) Questions
A company needs to improve its information security and wants guidelines for risk assessment related to data access. What should this company use?
- HIPAA
- Six Sigma
- PCI DSS
- ISO 27001
Explanation
Explanation
Correct answer: (D.) ISO 27001
ISO/IEC 27001 is an internationally recognized standard for information security management systems (ISMS). It provides a structured framework for identifying, assessing, and managing information security risks, including those related to data access control. Option D is correct because ISO 27001 specifically focuses on systematic risk assessment and security controls for protecting organizational data. The other options are incorrect: HIPAA is a healthcare-specific regulation, Six Sigma is a quality improvement methodology unrelated to information security, and PCI DSS is limited to payment card data security rather than general risk assessment for all data access.
Which one of the following statements about a management information system (MIS) is false
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A MIS supports day-to-day operations by aggregating and formatting data about an organization's transactions.
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A MIS is best suited to solve problems when uncertainty is great and reporting requirements are ill-defined.
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A MIS is often fed with input by a transaction processing system.
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The information produced by a MIS is made available to middle management for use in controlling an organization's activities.
Explanation
Correct Answer B. A MIS is best suited to solve problems when uncertainty is great and reporting requirements are ill-defined.
Explanation
A Management Information System (MIS) primarily supports structured decision-making and well-defined reporting needs. It is designed for routine, structured decision-making rather than solving highly uncertain or ambiguous problems.
Why other options are wrong
A. A MIS supports day-to-day operations by aggregating and formatting data about an organization's transactions. – This is true because MIS processes transaction data to generate reports that help with daily business operations.
C. A MIS is often fed with input by a transaction processing system. – This is correct as Transaction Processing Systems (TPS) collect and process raw data, which is then used by MIS for reporting and decision-making.
D. The information produced by a MIS is made available to middle management for use in controlling an organization's activities. – This is true since MIS primarily serves middle management by providing reports for monitoring and controlling operations.
An internal attack led to the exposure of many customer accounts for an online retailer. However, the company is unwilling to report the crime. Why is the company unwilling to report the crime?
- This was not the first instance of computer crime.
- The company's reputation may be hurt.
- There are no laws against unauthorized information access.
- The vulnerability was unknown.
Explanation
Explanation
Correct answer: (B.) The company's reputation may be hurt.
Organizations often hesitate to report cybersecurity incidents due to potential reputational damage. Disclosing a breach can reduce customer trust, harm brand image, and lead to financial loss or legal scrutiny. Even when reporting may be legally required, companies may initially resist because of these reputational concerns. Option B is correct because protecting the company’s reputation is a common reason organizations avoid disclosing security incidents. The other options are incorrect: prior incidents do not determine reporting decisions, unauthorized access is generally illegal, and whether a vulnerability was known does not justify withholding disclosure.
Which function describes a role of an executive support system (ESS)?
- Keeping track of elementary business activities
- Providing sophisticated analytics and models for leaders in the middle of the hierarchy
- Providing answers to routine questions with a predefined procedure for answering them
- Addressing needs of leaders at the top of the hierarchy
Explanation
Explanation
Correct answer: (D.) Addressing needs of leaders at the top of the hierarchy
An Executive Support System (ESS) is designed specifically for senior executives and top-level decision-makers. Its purpose is to support strategic decision-making by providing summarized internal and external information, dashboards, and high-level analytical tools. It is not focused on routine operations or structured queries but on long-term, unstructured, and strategic decisions. Option D correctly identifies this role because ESS systems are built to serve the informational and decision-making needs of leaders at the top of the organizational hierarchy. The other options describe systems used at lower levels: A refers to Transaction Processing Systems (TPS), B aligns more with Decision Support Systems (DSS), and C describes Management Information Systems (MIS) or operational query systems.
What is the primary purpose of the flow of information within an organization
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To minimize the need for direct supervision.
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To centralize decision-making authority.
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To facilitate communication and coordination among employees.
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To control the flow of work materials.
Explanation
Correct Answer C. To facilitate communication and coordination among employees.
Explanation
The flow of information within an organization is essential for ensuring that employees can communicate effectively, share knowledge, and coordinate their activities. This helps improve efficiency, collaboration, and overall productivity. Organizations rely on clear information flow to align goals, streamline processes, and make informed decisions.
Why other options are wrong
A. To minimize the need for direct supervision. – While effective communication may reduce the need for constant supervision, it is not the primary purpose of information flow.
B. To centralize decision-making authority. – Organizations may choose centralized or decentralized decision-making structures, but the flow of information itself is not designed solely for centralization. Instead, it supports decision-making at all levels.
D. To control the flow of work materials. – The movement of work materials is part of logistics and supply chain management, which is separate from the broader concept of information flow.
Which database management system capability is associated with creating table field characteristics?
- Data definition
- Data dictionary
- Data reduction
- Data manipulation
Explanation
Explanation
Correct answer: (A.) Data definition
The capability in a database management system (DBMS) responsible for creating and defining table structures, including fields, data types, and constraints, is known as data definition. This is handled through the Data Definition Language (DDL), which allows users to design and modify database schemas. Option A is correct because data definition specifically involves creating and specifying table field characteristics. The other options are incorrect: a data dictionary stores metadata about the database, data manipulation refers to working with existing data (such as insert, update, delete), and data reduction is not a core DBMS structural capability.
Which business intelligence gathering method is used to monitor online communities for public opinions?
- Reporting tools
- Benchmarking
- Social media analytics
- Text analytics
Explanation
Explanation
Correct answer: (C.) Social media analytics
Monitoring online communities for public opinion involves tracking, analyzing, and interpreting user-generated content on platforms such as social networks, forums, and review sites. Social media analytics is specifically designed for this purpose, as it collects and analyzes engagement data (likes, shares, comments) as well as sentiment and trends from online interactions. Option C is correct because it directly focuses on understanding public opinions expressed in social environments. The other options are incorrect: reporting tools summarize internal data, benchmarking compares performance against standards or competitors, and text analytics focuses on extracting meaning from text but is broader and not specifically centered on monitoring online communities.
Which of the following statements about the timeliness of information is FALSE
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Timeliness is a function of situational variables.
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Managers should have information in time to take appropriate action.
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Timely could imply that the information needs to be fast.
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Timely might mean next year in some cases.
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Timely information must reach the manager as quickly as possible.
Explanation
Correct Answer E. Timely information must reach the manager as quickly as possible.
Explanation
Timeliness refers to providing information when it is needed for decision-making. While speed is important, timely information does not always mean "as fast as possible"; rather, it should arrive at the appropriate time to be useful.
Why other options are wrong
A. Timeliness is a function of situational variables. – This is true because the importance of timeliness depends on the context in which the information is used.
B. Managers should have information in time to take appropriate action. – This is correct, as information should be available when decisions need to be made.
C. Timely could imply that the information needs to be fast. – In some situations, rapid information delivery is necessary, such as in financial markets or crisis management.
D. Timely might mean next year in some cases. – This is also true. Some types of information, such as annual financial reports, may only be relevant at specific intervals.
Which of the following best describes non-financial transactions in an organization
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Transactions that directly impact the organization's cash flow
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Events that do not alter the financial position of the organization
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Activities that involve the purchase or sale of assets
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Transactions that are recorded in the financial statements
Explanation
Correct Answer B. Events that do not alter the financial position of the organization
Explanation:
Non-financial transactions are events or activities that do not directly affect the organization's financial position or cash flow. Examples include employee training sessions, internal meetings, or changes in organizational structure. These transactions are not recorded in financial statements because they do not involve monetary exchanges or changes in financial data.
Why Other Options Are Wrong:
A. Transactions that directly impact the organization's cash flow
This option is incorrect because non-financial transactions do not directly impact cash flow. Transactions affecting cash flow are financial in nature, such as sales or expenses.
C. Activities that involve the purchase or sale of assets
This option is incorrect because activities involving the purchase or sale of assets are financial transactions. These activities directly affect the organization's financial position and are recorded in financial statements.
D. Transactions that are recorded in the financial statements
This option is incorrect because non-financial transactions are not recorded in financial statements. Only financial transactions that impact the organization's financial position are recorded.
What involves capturing and gathering all data necessary to complete the processing of transactions
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Data manipulation
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Data editing
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Data input
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Data collection
Explanation
Correct Answer D. Data collection
Explanation:
Data collection is the process of capturing and gathering all the necessary data required to complete the processing of transactions. This step ensures that all relevant information is available for subsequent processing, analysis, and decision-making.
Why Other Options Are Wrong:
A. Data manipulation
This option is incorrect because data manipulation refers to the process of transforming or altering data, not capturing it.
B. Data editing
This option is incorrect because data editing involves reviewing and correcting data for accuracy, which occurs after data collection.
C. Data input
This option is incorrect because data input refers to entering collected data into a system, which is a step that follows data collection.
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