Chapter 1

1) The Hershey's example shows the complexity of implementing ERP systems in

organizations.
Answer: TRUE
Diff: 1 Page Ref: 3
2) In the early days of ERP implementation, management clearly understood the
magnitude of organizational issues to consider before and during ERP implementations.
Answer: FALSE
Diff: 1 Page Ref: 3
3) ERP systems are not much different from conventional software packages like
Microsoft Office.
Answer: FALSE
Diff: 1 Page Ref: 3
4) ERP implementations usually go beyond technical issues, to include people, process
and change issues.
Answer: TRUE
Diff: 2 Page Ref: 3
5) eBusiness is an adaptive technology as opposed to ERP which is a disruptive
technology.
Answer: FALSE
Diff: 2 Page Ref: 24
6) During the input phase of an Information System, the people components are most
prominent.
Answer: TRUE
Diff: 2 Page Ref: 5
7) No single information system can support all the needs of a business.
Answer: TRUE
Diff: 1 Page Ref: 4

8) At the mid-management level, functions are highly structured and the resources are
predefined.
Answer: FALSE
Diff: 2 Page Ref: 5
9) Quantitative requirements are usually much greater at the operational level.
Answer: TRUE
Diff: 2 Page Ref: 6
10) Strategic level functions are usually more unstructured.
Answer: TRUE
Diff: 2 Page Ref: 5
11) Because of the increasing pressure of global competition, businesses are becoming
less integrated and more compartmentalized.
Answer: FALSE
Diff: 2 Page Ref: 5
12) The goal of an ERP system is to integrate data and support all the major functions
across the organization.
Answer: TRUE
Diff: 1 Page Ref: 6
13) One problem with ERP systems is that they do not update data in real-time.
Answer: FALSE
Diff: 1 Page Ref: 8
14) Historically, each department had its own separate computer system that was
designed for the specific tasks in that department.
Answer: TRUE
Diff: 2 Page Ref: 7
15) In the 1960s and 1970s organizations first began to focus on developing integrated,
enterprise systems.
Answer: FALSE
Diff: 1 Page Ref: 9
16) ERP systems grew primarily out of MRP and MRP II.
Answer: TRUE
Diff: 2 Page Ref: 9
17) ERP II expanded to include B2B functions and EDI.
Answer: TRUE
Diff: 3 Page Ref: 9
18) ERP systems today have evolved to the more flexible mainframe and centralized
legacy application architecture.
Answer: FALSE
Diff: 2 Page Ref: 9
19) ERP systems usually don't require businesses to change their business processes.
Answer: FALSE
Diff: 2 Page Ref: 10
20) It is generally easier for an organization to modify the ERP software to fit their
existing business processes.
Answer: FALSE
Diff: 3 Page Ref: 10
21) A database is considered to be one of the key components of an ERP system.
Answer: TRUE
Diff: 2 Page Ref: 10
22) When ERP software is purchased from a vendor, this is known as a "vendor-driven"
architecture.
Answer: FALSE
Diff: 2 Page Ref: 11
23) The architecture of the ERP system is determined well before the ERP software is
chosen.
Answer: FALSE
Diff: 3 Page Ref: 11
24) One benefit of implementing an ERP system is that the implementations are usually
quite similar from one organization to another.
Answer: FALSE
Diff: 3 Page Ref: 15
25) The physical architecture of an ERP system focuses on the efficiency of the system.
Answer: TRUE
Diff: 2 Page Ref: 12
26) The most important lesson learned by Hershey in their ERP implementation was
that they should proceed slowly so that nothing is left out during the implementation.
Answer: TRUE
Diff: 2 Page Ref: 3
27) ERP systems are a specific kind of enterprise system to integrate data across all
major functions of an organization.
Answer: TRUE
Diff: 1 Page Ref: 6
28) A goal of ERP systems is to make information flow be both dynamic and immediate.
Answer: TRUE
Diff: 1 Page Ref: 6
29) ERP and e-Business are diverse technologies.
Answer: FALSE
Diff: 2 Page Ref: 16
30) In the tiered architecture of an ERP system, the ERP software is actually loaded
onto the data tier.
Answer: FALSE
Diff: 3 Page Ref: 13
31) The lowest tier of the ERP tiered architectures is where the database server is
located.
Answer: TRUE
Diff: 3 Page Ref: 13
32) e-Business is an example of a non-disruptive technology.
Answer: FALSE
Diff: 2 Page Ref: 16
33) In a tiered ERP architecture, users interact with the system via the presentation
logic tier.
Answer: TRUE
Diff: 3 Page Ref: 13
34) ERP represents a(n) adaptive technology.
Answer: TRUE
Diff: 2 Page Ref: 16
35) On corporate intranets, ERP functionality is delivered using no internet-based
protocols.
Answer: FALSE
Diff: 3 Page Ref: 17
36) One roadblock for ERP systems is that they require a substantial investment in
order to be successful.
Answer: TRUE
Diff: 2 Page Ref: 17
37) As opposed to e-Business systems, ERP systems are focused more on internal
process integration.
Answer: TRUE
Diff: 2 Page Ref: 17
38) An ERP system implementation is less complex than a typical Information System
implementation.
Answer: FALSE
Diff: 2 Page Ref: 18
39) At the start of an ERP implementation, it is important that clear and well-defined
data design be communicated to the organization.
Answer: FALSE
Diff: 3 Page Ref: 19
40) A(n) ________ is defined as a series of tasks or activities grouped to achieve a
business function or goal.
A) software design
B) system prototype
C) business process
D) information system
Answer: C
Diff: 2 Page Ref: 40
41) Checking inventory is an example of a(n):
A) software function.
B) system function.
C) database.
D) business process.
Answer: D
Diff: 1 Page Ref: 10
42) When an ERP system is upgraded, this means that the IT staff will have to upgrade
not only the existing application, but also any ________ they have made.
A) modifications
B) protections
C) designs
D) decisions
E) clarifications
Answer: A
Diff: 3 Page Ref: 10
43) An Information System includes each of the following except:
A) software.
B) culture.
C) hardware.
D) data.
Answer: B
Diff: 2 Page Ref: 4
44) An ERP architecture consists of both a physical architecture and a(n):
A) labor component.
B) system architecture.
C) database.
D) logical architecture.
E) system documentation.
Answer: D
Diff: 2 Page Ref: 11
45) All of the following are components of an ERP system except:
A) tools.
B) hardware.
C) processes.
D) people.
E) databases.
Answer: A
Diff: 1 Page Ref: 10
46) The general goal of an Information System is to convert data into useful:
A) procedures.
B) tools.
C) information.
D) data flows.
Answer: C
Diff: 1 Page Ref: 4
47) A(n) ________ is a dynamic sub-organization that can be created and eliminated
depending on need.
A) strategic group
B) Business Unit
C) department
D) matrix group
E) IT group
Answer: B
Diff: 2 Page Ref: 5
48) Which of the following is not a component of an Information System?
A) hardware
B) people
C) data
D) software
E) output
Answer: E
Diff: 2 Page Ref: 4
49) ERP systems are ________ which means they can be accessed using a web client.
A) functional
B) cross-functional
C) real-time
D) integrated
E) web-enabled
Answer: E
Diff: 2 Page Ref: 7
50) The concept of ________ means that clean data can be entered once and then
reused across all applications.
A) cross-data reports
B) data integration
C) real-time access
D) data flows
E) system integration
Answer: B
Diff: 2 Page Ref: 8
51) During the 1960s and 1970s most organizations designed their systems in a
________ manner.
A) interrelated
B) cross-functional
C) componentized
D) silo
E) cohesive
Answer: D
Diff: 2 Page Ref: 8
52) ERP systems integrate a business' processes across their:
A) system boundaries.
B) functional dependencies.
C) value chain.
D) sales activities.
Answer: C
Diff: 2 Page Ref: 8
53) ERP vendors embed ________ in their software.
A) components
B) data
C) protocols.
D) best practices
E) upgrades
Answer: D
Diff: 3 Page Ref: 8
54) A "vanilla" ERP implementation is when the organization decides to implement the
ERP software:
A) "as is."
B) quickly.
C) with B2B capabilities.
D) without complex interfaces.
E) with special additions.
Answer: A
Diff: 2 Page Ref: 10
55) ERP system implementation failures are often caused by lack of attention to the
business processes and the ________ components.
A) interrelated
B) hardware
C) software
D) database
E) people
Answer: E
Diff: 2 Page Ref: 10
56) The ________ approach to implementing an ERP system helps organizations lower
the long-term maintenance of the ERP application.
A) RAD
B) layered
C) waterfall
D) data flow
Answer: B
Diff: 3 Page Ref: 10
57) ERP systems help to increase the efficiency of the organization and worker
productivity by providing a ________ for all corporate data, information, and knowledge.
A) network
B) platform
C) architecture
D) central repository
E) decentralized archive
Answer: D
Diff: 2 Page Ref: 14
58) In the tiered architecture, the ERP application is stored on the ________ tier.
A) presentation logic
B) business logic
C) middleware
D) data
E) hardware
Answer: B
Diff: 3 Page Ref: 14
59) A strong commitment from ________ is critical for the success of an ERP system.
A) people
B) vendors
C) management
D) users
E) system administrators
Answer: C
Diff: 3 Page Ref: 15
60) ________ an ERP system during the implementation increases the cost of the
system and increases the implementation risks.
A) Integrating
B) Diagramming
C) Delaying
D) Outsourcing
E) Modifying
Answer: E
Diff: 3 Page Ref: 18
61) A ________ implementation involves considerable modifications to the ERP
software.
A) chocolate
B) vanilla
C) cross-functional
D) vendor-driven
E) web-enabled
Answer: A
Diff: 3 Page Ref: 18
62) Because they lack the skill sets and time necessary to develop it ________, most
organizations choose to purchase ERP software from a vendor.
A) in-house
B) efficiently
C) modularized
D) organically
E) cross-functionally
Answer: A
Diff: 2 Page Ref: 19
63) An organization must first do a ________ to help narrow down the ERP vendors to
a select few.
A) system analysis
B) needs assessment
C) vendor review
D) performance review
Answer: B
Diff: 3 Page Ref: 19
64) ________ is the time from "go live" to about 90 days after, or until the number of
issues and problems have been reduced.
A) Implementation
B) Rationalization
C) Analysis
D) Stabilization
E) Testing and Debugging
Answer: D
Diff: 3 Page Ref: 20
65) One of ERP Systems's goals is to make information flow between ________ and
the system.
A) accounting
B) finance
C) production
D) marketing
E) all of the above
Answer: E
Diff: 2 Page Ref: 6
66) In the ERP systems, they must meet the organizational needs in todays's
competitive environment to be:
A) cross functional, dynamic, and siloed.
B) mono functional, dynamic and global.
C) cross functional, dynamic and global.
D) cross functional, static and global.
E) none of the above
Answer: C
Diff: 2 Page Ref: 6
67) Business organizations have become ________.
A) more complex
B) less complex
C) easier to manage
D) more layered
E) all of the above
Answer: A
Diff: 1 Page Ref: 4
68) The CEO of a firm probably requires less quantity of information but a very high
________ of information.
A) amount
B) quality
C) cost
D) transfer
E) none of the above
Answer: B
Diff: 2 Page Ref: 6
69) As organizations grew they tended to create a hodge-podge of siloed information
systems that lacked ________.
A) analysis
B) modularity
C) diversity
D) integration
E) none of the above
Answer: D
Diff: 1 Page Ref: 6
70) A(n) ________ system is an integrated information system that supports all the
functions of the enterprise in real-time.
A) Silo
B) ERP
C) Decentralized
D) Management
E) none of the above
Answer: B
Diff: 1 Page Ref: 7
71) An ERP system works on a(n) ________ database that allows various departments
to share information and communicate with each other.
A) silo
B) ERP
C) single
D) archive
E) none of the above
Answer: C
Diff: 2 Page Ref: 9
72) As opposed to ERP systems, e-Business systems are focused more on integrating
________ processes.
A) external
B) hardware
C) internal
D) software
E) none of the above
Answer: A
Diff: 2 Page Ref: 17
73) One benefit of ERP systems is that by having standard user interfaces, less
________ of employees is required.
A) numbers
B) management
C) quality
D) training
E) none of the above
Answer: D
Diff: 2 Page Ref: 17
74) It is not uncommon for employees to ________ the changes in their roles and
department boundaries due to the new ERP system.
A) embrace
B) resist
C) request
D) sabotage
E) none of the above
Answer: B
Diff: 2 Page Ref: 18
75) Making modifications to the ERP software will ________ the investment in the
system and introduce higher implementation risk.
A) increase
B) decrease
C) simplify
D) reinforce
E) none of the above
Answer: A
Diff: 2 Page Ref: 20
Chapter 2

1) When data has to be manually re-entered from one system into another system, this
indicates that the systems have seamless integration.
Answer: FALSE
Diff: 2 Page Ref: 37
2) When systems are integrated they can share information in real-time.
Answer: TRUE
Diff: 1 Page Ref: 37
3) ERP systems allow organizations to integrate heterogeneous systems into one with
an integrated database system.
Answer: TRUE
Diff: 2 Page Ref: 38
4) Until recently, information systems and organizations have evolved into functional
silos.
Answer: TRUE
Diff: 2 Page Ref: 38
5) Mid-level managers typically focus on planning the long-term strategy of the
organization.
Answer: FALSE
Diff: 1 Page Ref: 39
6) The current classification of organizations into departments like Accounting and
Human Resources shows how the organizational structure evolved by breaking
complex tasks into smaller, manageable tasks.
Answer: TRUE
Diff: 2 Page Ref: 39
7) Organizations have horizontal and vertical divisions.
Answer: TRUE
Diff: 1 Page Ref: 39
8) When organizations get large and complex they tend to break functions into larger
units and assign one or more staff the responsibility for these activities.
Answer: FALSE
Diff: 2 Page Ref: 40
9) When organizations get large and complex sharing of information happens only at
higher levels of management.
Answer: TRUE
Diff: 2 Page Ref: 40
10) The functional silo problem gave birth to BPR.
Answer: TRUE
Diff: 3 Page Ref: 40
11) The business process view flattens the organization structure from a matrix to a
hierarchical structure.
Answer: FALSE
Diff: 3 Page Ref: 41
12) Information systems that work independently and are grouped by the various
functions and/or departments are known as silos.
Answer: TRUE
Diff: 2 Page Ref: 42
13) Independent information systems are good for sharing data between users.
Answer: FALSE
Diff: 1 Page Ref: 43
14) Functional silos deliver value through their cross-functional performance but are
evaluated for their functional performance.
Answer: TRUE
Diff: 3 Page Ref: 43
15) Silo environments help to foster enterprise decision-making and overall
effectiveness.
Answer: FALSE
Diff: 2 Page Ref: 43
16) The functional model of POSDCORB (Planning, Organizing, Staffing, Directing,
Coordinating, Reporting, Budgeting) dates back to the 1930s yet is still in use today.
Answer: TRUE
Diff: 1 Page Ref: 38
17) The distributed system architecture has been commonly used in organizations for
quite some time.
Answer: TRUE
Diff: 2 Page Ref: 44
18) The first generation of computer architecture was the decentralized approach.
Answer: FALSE
Diff: 2 Page Ref: 44
19) In a decentralized computer architecture, every user is given a personal computer.
Answer: TRUE
Diff: 2 Page Ref: 44
20) A centralized computer architecture is based on using servers to share data and
applications.
Answer: FALSE
Diff: 2 Page Ref: 44
21) A distributed architecture is good for ERP systems because they are flexible and
scalable.
Answer: TRUE
Diff: 2 Page Ref: 44
22) The manufacturing area has basically the same information needs and reporting
requirements as the marketing area.
Answer: FALSE
Diff: 2 Page Ref: 44
23) Transaction processing systems are designed to support office workers.
Answer: FALSE
Diff: 2 Page Ref: 45
24) Decision support systems take data from the TPSs in the organization to help
managers make better decisions.
Answer: TRUE
Diff: 3 Page Ref: 45
25) Expert systems are a type of Executive Support System to support top-level
executives.
Answer: FALSE
Diff: 2 Page Ref: 45
26) Silos will probably not prevent customer service representatives from accessing
customer data payment records in real-time.
Answer: FALSE
Diff: 2 Page Ref: 38
27) Systems integration can't help employees at a lower levels make better decisions
and feel more empowered and productive.
Answer: FALSE
Diff: 3 Page Ref: 38
28) The people issues are the most challenging in systems integration.
Answer: TRUE
Diff: 3 Page Ref: 38
29) Functional department heads will probably lose control of the data they produce in
an integrated system.
Answer: TRUE
Diff: 3 Page Ref: 39
30) Getting employee buy-in on a systems integration project is very critical for the
success of the integrated system.
Answer: TRUE
Diff: 2 Page Ref: 39
31) One consequence of making information more easily shared will be that integrated
systems won't make it easier to get illegal access to the data.
Answer: FALSE
Diff: 2 Page Ref: 41
32) CEOs and Presidents are involved in planning the long-term strategy of the
organization.
Answer: TRUE
Diff: 1 Page Ref: 37
33) Lower-level managers rarely focus on the day-to-day operations of the organization.
Answer: FALSE
Diff: 1 Page Ref: 38
34) A cross-functional task such as order processing involves interactions between
sales, warehousing and accounting.
Answer: TRUE
Diff: 2 Page Ref: 40
35) Heterogeneous or independent non-integrated systems create bottlenecks, interfere
with productivity, and breed inaccurate data.
Answer: TRUE
Diff: 2 Page Ref: 41
36) The three major types of information system architectures include centralized,
decentralized and distributed systems architectures.
Answer: TRUE
Diff: 2 Page Ref: 44
37) Today's information systems are based on a centralized architecture that allows
sharing of applications and data resources between the end user and the server
computers.
Answer: FALSE
Diff: 3 Page Ref: 44
38) The distributed system architecture is very complex requiring careful planning and
design.
Answer: TRUE
Diff: 1 Page Ref: 45
39) Information systems support the major functional areas of a business including
manufacturing, finance, accounting, human resources, and marketing.
Answer: TRUE
Diff: 1 Page Ref: 45
40) Operating systems and databases are examples of systems that support the end-
users directly.
Answer: FALSE
Diff: 2 Page Ref: 46
41) A(n) ________ provides a visual dashboard of strategic information to top-level
management in real time.
A) DSS
B) TPS
C) ESS
D) OAS
Answer: C
Diff: 2 Page Ref: 45
42) Information systems that are used for generating reports for mid-level managers are
known as:
A) ESS.
B) DSS.
C) databases.
D) MIS.
Answer: D
Diff: 2 Page Ref: 45
43) Systems integration means allowing access to a shared data resource by people
from different ________ areas of the organization.
A) functional
B) geographical
C) decisional
D) logical
Answer: A
Diff: 2 Page Ref: 46
44) At the physical level, systems integration means providing seamless connectivity
between ________ systems.
A) software
B) functional
C) distributed
D) heterogeneous
Answer: D
Diff: 2 Page Ref: 46
45) Business ________ reengineering involves changing the mindset of employees to
do their tasks in a new way.
A) software
B) system
C) process
D) task
E) function
Answer: C
Diff: 2 Page Ref: 46
46) To get employees to do their task in a new way, managers must get them to shift
their focus from achieving ________ goals to organizational goals.
A) procedural
B) departmental
C) functional
D) individual
E) practical
Answer: B
Diff: 2 Page Ref: 46
47) One step in the systems integration process is to develop a policy on whether older,
________ systems will be supported and maintained.
A) business
B) functional
C) departmental
D) legacy
Answer: D
Diff: 3 Page Ref: 47
48) To avoid support and maintenance problems with the integrated system it is
important to create a ________ IT help desk and support.
A) strategic
B) business
C) centralized
D) network
E) distributed
Answer: C
Diff: 3 Page Ref: 47
49) If there is a system failure or a major disaster it is crucial that a good ________
system for the integrated system be in place.
A) hardware
B) backup and recovery
C) database
D) crisis management
E) electrical
Answer: B
Diff: 2 Page Ref: 47
50) The first step in systems integration is to take inventory of the various IT ________
being used in the organization.
A) resources
B) databases
C) hardware components
D) integrated systems
E) web-enabled applications
Answer: A
Diff: 2 Page Ref: 47
51) ________ tools are good for short-term integration of existing applications in the
organization.
A) Hardware
B) Data integration
C) Real-time access
D) Business process integration
E) Middleware
Answer: E
Diff: 3 Page Ref: 46
52) In general, the biggest benefits of implementing an integrated system include a
reduction in inventory and ________ costs.
A) personnel
B) direct
C) material
D) silo
E) indirect
Answer: A
Diff: 3 Page Ref: 48
53) Being able to approve a customer's credit application on the spot is an example of
how integrated systems can provide better:
A) resources.
B) market research.
C) information visibility.
D) support.
Answer: C
Diff: 3 Page Ref: 49
54) A side benefit of integration is that the organization is forced to ________ its
hardware, software, and IT policies.
A) review
B) reengineer
C) upgrade
D) standardize
Answer: D
Diff: 2 Page Ref: 48
55) Because of the high initial setup costs for the integrated system, it is particularly
crucial to have a strong commitment from:
A) the consultants.
B) the IT staff.
C) top management.
D) the employees.
Answer: C
Diff: 2 Page Ref: 49
56) Because systems integration often involves sharing information across
departments, this often creates ________ among the functional departments.
A) power conflicts
B) new opportunities
C) network failures
D) better decisions
Answer: A
Diff: 2 Page Ref: 49
57) Many benefits of integrated systems are ________ so they are difficult to quantify.
A) financial
B) operational
C) intangible
D) decisional
E) tangible
Answer: C
Diff: 2 Page Ref: 48
58) ERP systems are integrated, multi-module ________ software packages.
A) network
B) web-service
C) database
D) application
E) platform
Answer: D
Diff: 2 Page Ref: 48
59) At the ________ level, ERP systems require organizations to focus on business
processes rather than functions.
A) presentation
B) logical
C) middleware
D) physical
E) hardware
Answer: B
Diff: 3 Page Ref: 49
60) ERP systems come with built-in ________ for a variety of functions such as entering
a customer order.
A) tasks
B) vendors
C) processes
D) users
E) roles
Answer: C
Diff: 2 Page Ref: 50
61) Because of an ERP system, customers should be able to find out ________ the
current status of their orders.
A) eventually
B) on the web
C) in real-time
D) quickly
Answer: C
Diff: 2 Page Ref: 50
62) Hershey's ERP project failed initially because they failed to break their existing:
A) chocolate bars.
B) functional silos.
C) cross-functional roles.
D) hardware resources.
E) software development patterns.
Answer: B
Diff: 3 Page Ref: 50
63) The current generation of ERP systems does not work well with ________
architecture on legacy platforms.
A) in-house
B) distributed
C) grid
D) centralized
E) cross-platform
Answer: D
Diff: 3 Page Ref: 51
64) An organization that wants to connect its systems with its partners and suppliers
needs to have a robust ________ system in place.
A) supply chain
B) ERP
C) DSS
D) TPS
Answer: B
Diff: 3 Page Ref: 51
65) One benefit of ERP systems is that they allow organizations to quickly form and
break ________ with other companies.
A) networks
B) web services
C) protocols
D) alliances
Answer: D
Diff: 3 Page Ref: 51
66) Integrated systems should ________ share information with one another.
A) never
B) slowly
C) rarely
D) seamlessly
Answer: D
Diff: 1 Page Ref: 37
67) Manually reentering data in a system ________ leads to more errors and
inaccuracies.
A) rarely
B) usually
C) always
D) never
Answer: B
Diff: 1 Page Ref: 37
68) Early business organizations focused on breaking complex work tasks into
________ tasks that could be more easily managed and controlled.
A) larger
B) more complex
C) smaller
D) non-working
Answer: C
Diff: 2 Page Ref: 37
69) The hierarchical layers of an organization from strategic planning to operational
control represent ________ silos.
A) horizontal
B) matrix
C) corn
D) vertical
Answer: D
Diff: 1 Page Ref: 39
70) As organizations get more ________ and more virtual, information sharing and
communication problems get worse.
A) centralized
B) geographically dispersed
C) automated
D) integrated
Answer: B
Diff: 2 Page Ref: 40
71) The business process view flattens the organization from a hierarchical to a
________ structure.
A) vertical
B) relational
C) matrix
D) horizontal
Answer: C
Diff: 3 Page Ref: 40
72) A(n) ________ organization focuses all its business processes around improving its
relationship with its customers.
A) sales oriented
B) non-profit
C) vertical
D) customer-centric
Answer: D
Diff: 2 Page Ref: 41
73) ________ systems focus on individual tasks and/or functions rather than on a
process and supporting team collaboration.
A) Matrix
B) Vertical
C) Hierarchical
D) Silo
Answer: D
Diff: 2 Page Ref: 42
74) In silo systems information is captured and re-entered several times and is not
available in ________.
A) batches
B) real-time
C) back-ups
D) hardcopy
Answer: B
Diff: 2 Page Ref: 42
75) The evolution of Information Systems is often viewed as a(n) ________ change
process in which technologies, human factors, organizational relationships and tasks
change continuously.
A) easy
B) automated
C) simplified
D) socio-technical
Answer: D
Diff: 3 Page Ref: 44
Chapter 3

1) Implementing a new ERP system is mainly a question of installing ERP software.

Answer: FALSE
Diff: 2 Page Ref: 59
2) The hard part of installing an ERP system is changing the business processes of the
people who will use the system.
Answer: TRUE
Diff: 2 Page Ref: 59
3) An ERP system architecture should adapt to future business challenges.
Answer: TRUE
Diff: 1 Page Ref: 59
4) ERP systems need both current and historical data.
Answer: TRUE
Diff: 2 Page Ref: 59
5) Understanding the enterprise architecture is helpful because it helps everyone
understand the various components of the enterprise system better.
Answer: TRUE
Diff: 1 Page Ref: 59
6) The functional view of the enterprise system architecture defines the physical
components of the system.
Answer: FALSE
Diff: 3 Page Ref: 60
7) The databases used are components of the ERP system architecture.
Answer: TRUE
Diff: 3 Page Ref: 60
8) Organizations rarely selectively implement different ERP modules.
Answer: FALSE
Diff: 3 Page Ref: 60
9) ERP software provides business functionality for everything except human resources.
Answer: FALSE
Diff: 2 Page Ref: 61
10) In ERP software, the procurement module includes the best practices on
purchasing.
Answer: TRUE
Diff: 2 Page Ref: 61
11) Logistics is an example of a typical ERP module.
Answer: TRUE
Diff: 2 Page Ref: 61
12) Marketing automation is an example of a typical ERP module.
Answer: FALSE
Diff: 3 Page Ref: 61
13) Production modules have evolved from MRP II into ERP systems.
Answer: TRUE
Diff: 3 Page Ref: 62
14) ERP vendors generally use the same names for all their different modules.
Answer: FALSE
Diff: 1 Page Ref: 62
15) The purchasing module must be tightly integrated with the inventory control and the
sales logistics modules.
Answer: FALSE
Diff: 3 Page Ref: 62
16) The inventory module helps maintain the appropriate level of stock in a warehouse.
Answer: TRUE
Diff: 1 Page Ref: 63
17) Most ERP vendors offer an online storefront as part of the sales module.
Answer: TRUE
Diff: 2 Page Ref: 63
18) Sales modules have to be closely integrated with the organization's network
module.
Answer: FALSE
Diff: 2 Page Ref: 63
19) The HR module is usually the last module implemented by companies.
Answer: FALSE
Diff: 3 Page Ref: 63
20) When a new employee is hired and enrolled in the company benefits plan, this
would involve using the human resources module.
Answer: TRUE
Diff: 2 Page Ref: 63
21) Project management is an example of a non-traditional ERP module now being
offered by some vendors.
Answer: TRUE
Diff: 3 Page Ref: 64
22) A performance management module is useful for empowering employees and
managers by giving them easy access to all their relevant information.
Answer: FALSE
Diff: 3 Page Ref: 64
23) One benefit of using a financial module is that it provides strong support for
Sarbanes-Oxley reporting.
Answer: TRUE
Diff: 2 Page Ref: 65
24) The procurement and logistics module benefits the organization by helping to
reduce transportation costs.
Answer: TRUE
Diff: 2 Page Ref: 65
25) In an ERP architecture, hardware layering has had a significant impact on
scalability.
Answer: TRUE
Diff: 3 Page Ref: 65
26) ERP applications are most commonly deployed in a distributed and often widely
dispersed manner.
Answer: TRUE
Diff: 2 Page Ref: 65
27) ERP system architectures are organized in layers or tiers to help manage the
complexity of the system.
Answer: TRUE
Diff: 2 Page Ref: 65
28) Legacy systems and third party applications can be linked to ERP systems through
the GUI.
Answer: FALSE
Diff: 3 Page Ref: 65
29) Middleware provides generic interfaces with which integrated applications pass
messages to each other.
Answer: TRUE
Diff: 2 Page Ref: 66
30) SAP developed its own platform for systems integration called OASIS.
Answer: FALSE
Diff: 2 Page Ref: 67
31) A web-based portal allows users to get access to their ERP applications through
their browser.
Answer: TRUE
Diff: 2 Page Ref: 67
32) OLAP is the foundation of the business intelligence module in ERP systems.
Answer: TRUE
Diff: 2 Page Ref: 71
33) Today's IT infrastructure focuses on integrating the corporate architecture with the
GUI and extending it beyond the organization.
Answer: FALSE
Diff: 2 Page Ref: 71
34) Three-tier architectures are scalable in that it is easier to add, change and remove
applications and hardware.
Answer: TRUE
Diff: 2 Page Ref: 73
35) With the addition of the extra tier, the three-tier architecture is considerably less
complex than the two-tier architecture.
Answer: FALSE
Diff: 1 Page Ref: 73
36) The ERP system ________ determines the relationships between all the complex IT
components.
A) network
B) layout
C) architecture
D) middleware
Answer: C
Diff: 1 Page Ref: 59
37) The IT components of an ERP system architecture include the hardware, software
and the:
A) security.
B) data.
C) organization.
D) middleware.
Answer: B
Diff: 2 Page Ref: 59
38) The enterprise system architecture can be viewed from two different angles
...
the functional angle and the ________ angle.
A) system
B) network
C) decisional
D) logical
Answer: A
Diff: 2 Page Ref: 60
39) ERP vendors break the software up into ________ which organizations can
selectively implement to support their different functional areas.
A) programs
B) systems
C) applications
D) modules
Answer: D
Diff: 2 Page Ref: 60
40) ERP vendors embed their best business ________ in their software to help
businesses improve their productivity and performance.
A) decisions
B) products
C) practices
D) tasks
E) functions
Answer: C
Diff: 2 Page Ref: 61
41) If the ERP vendor's software and best practices do not match the organization's
needs, it may be necessary to ________ the ERP software.
A) proceduralize
B) customize
C) compartmentalize
D) individualize
E) upgrade
Answer: B
Diff: 2 Page Ref: 61
42) Manufacturing capacity is planned and optimized using the ________ module.
A) purchasing
B) sales & marketing
C) production
D) accounting
Answer: C
Diff: 2 Page Ref: 62
43) If a company wants to streamline their procurement processes, they would probably
choose to implement the ________ module.
A) inventory management
B) purchasing
C) logistics
D) finance
E) asset management
Answer: B
Diff: 3 Page Ref: 62
44) Order placement and schedule is handled in the ________ module.
A) sales and marketing
B) purchasing
C) logistics
D) finance
E) asset management
Answer: A
Diff: 2 Page Ref: 63
45) Employee data is managed in the ________ module.
A) database
B) purchasing
C) sales and marketing
D) credit management
E) human resource
Answer: E
Diff: 2 Page Ref: 63
46) The core of many ERP systems is the ________ module.
A) sales and marketing
B) purchasing
C) logistics
D) finance
E) process management
Answer: D
Diff: 3 Page Ref: 63
47) The ________ module provides tools and data warehousing capabilities.
A) self-service
B) project management
C) business intelligence
D) database
E) asset management
Answer: C
Diff: 3 Page Ref: 63
48) One benefit of the ________ module is that it helps companies comply with the
government rules of the Sarbanes-Oxley Act.
A) accounting
B) sales and marketing
C) production
D) finance
Answer: D
Diff: 3 Page Ref: 64
49) A ________ module helps customers get more direct access to applications such as
tracking the status of their orders.
A) self-service
B) project management
C) business intelligence
D) database
E) sales management
Answer: A
Diff: 3 Page Ref: 63
50) The ________ module uses data collection technologies such as RFID and bar
codes to improve resource allocation for cross-docking processes.
A) procurement
B) production
C) transportation
D) sales
E) accounting
Answer: A
Diff: 3 Page Ref: 64
51) The ________ tier acts as the intermediary between the client applications and the
database.
A) presentation
B) business
C) logical
D) middleware
Answer: B
Diff: 3 Page Ref: 65
52) Users input data in the ________ tier.
A) presentation
B) business
C) logical
D) application
E) database
Answer: A
Diff: 2 Page Ref: 65
53) In the ERP system, user ________ are set up to define access right for every user
in the portal.
A) security
B) web-services
C) roles
D) application
Answer: C
Diff: 2 Page Ref: 67
54) Research shows that large companies lose up to ________ per minute every time
their ERP system goes down.
A) $3K
B) $3.6M
C) $18K
D) $13K
E) $218K
Answer: D
Diff: 3 Page Ref: 68
55) A fully functioning ERP system needs a high availability ________ in order to
support the growth of the user population and its expansion out to the supply chain
partners.
A) database
B) application server
C) network
D) API
E) GUI
Answer: C
Diff: 3 Page Ref: 68
56) Online Analytical Processing is the foundation of the ________ module in ERP.
A) e-Commerce
B) business intelligence
C) performance management
D) project management
Answer: B
Diff: 2 Page Ref: 69
57) In a typical two-tier architecture, the server handles both the ________ and
database duties.
A) network
B) security
C) protocol control
D) application
E) user access
Answer: D
Diff: 3 Page Ref: 70
58) In the three-tier architecture, the application, database, and ________ layers are
separated into independent operating units.
A) network
B) security
C) protocol control
D) application
E) presentation
Answer: E
Diff: 3 Page Ref: 70
59) In the newer Web-based architecture, the ________ layer is split into the Web
Services tier and the Web Browser tier.
A) network
B) security
C) database
D) application
E) presentation
Answer: E
Diff: 3 Page Ref: 72
60) In ________ environments, clients only need access to the Internet and a standard
browser like Internet Explorer with a few plug-ins to interact with ERP applications.
A) server-centric
B) web-based
C) client-centric
D) n-tier client/server
Answer: A
Diff: 3 Page Ref: 72
61) The term ________ refers to system architectures that can have any number of
distinct tiers including 4-tiers and more.
A) frontier
B) m-tier
C) n-tier
D) 4 tier
E) none of the above
Answer: C
Diff: 3 Page Ref: 65
62) The GUI resides on the ________ tier.
A) logical
B) presentation
C) GUI
D) Application
E) none of the above
Answer: B
Diff: 2 Page Ref: 65
63) The ________ tier consists of a web browser and a reporting tool.
A) GUI
B) logical
C) presentation
D) application
E) database
Answer: D
Diff: 3 Page Ref: 66
64) The global organization that helps to promote the use of a common language is
called ________.
A) NCAA
B) OASIS
C) ICANN
D) Netweaver
E) none of the above
Answer: B
Diff: 3 Page Ref: 67
65) The web-based portal is part of the ________ tier.
A) application
B) presentation
C) GUI
D) Application
E) none of the above
Answer: B
Diff: 2 Page Ref: 67
66) In the ERP system, user ________ are set up to define the access rights for each
and every functional user of the system.
A) accounts
B) GUIs
C) applications
D) roles
E) none of the above
Answer: D
Diff: 2 Page Ref: 67
67) Many ERP implementations fail to realize all the benefits because they don't provide
the system with enough network ________.
A) bandwidth
B) traffic
C) software
D) hardware
E) none of the above
Answer: A
Diff: 3 Page Ref: 68
68) Because of the tremendous load that an ERP system places on the corporate LAN
and WAN, it is crucial that companies go through network ________, when deploying
an ERP system.
A) implementations
B) upgrades
C) downtime
D) capacity planning
E) none of the above
Answer: D
Diff: 3 Page Ref: 68
69) Third party system integration can be done in either the portal or the ________
layer.
A) presentation
B) logical
C) GUI
D) application
E) none of the above
Answer: D
Diff: 3 Page Ref: 70
70) The IT infrastructure in organizations has moved from centralized to client-server
and ________.
A) distributed
B) recentralized
C) siloed
D) unmanageable
E) none of the above
Answer: A
Diff: 2 Page Ref: 71
71) The first generation of the distributed IT architecture involved ________ tiers.
A) one
B) two
C) three
D) n
E) none of the above
Answer: B
Diff: 2 Page Ref: 71
72) A drawback of the two-tier ERP architecture is that it requires expensive ________
for integrating other systems.
A) middleware
B) 1 tier systems
C) 3 tier systems
D) n-tier systems
E) none of the above
Answer: A
Diff: 3 Page Ref: 71
73) The GUI resides on the ________ layer of the three-tier system architecture.
A) logical
B) presentation
C) GUI
D) application
E) none of the above
Answer: B
Diff: 2 Page Ref: 72
74) The ________ client/server architecture has been shown to improve performance
for groups with a large number of users.
A) one-tier
B) two-tier
C) three-tier
D) four-tier
E) none of the above
Answer: C
Diff: 3 Page Ref: 73
75) The next generation web-based architectures will help to deliver ________ access
to ERP systems.
A) limited
B) centralized
C) short term
D) ubiquitous
E) none of the above
Answer: D
Diff: 2 Page Ref: 74

Extra haha

36) The ERP system ________ determines the relationships between all the complex IT
components.
A) network
B) layout
C) architecture
D) middleware
Answer: C
Diff: 1 Page Ref: 59
37) The IT components of an ERP system architecture include the hardware, software
and the:
A) security.
B) data.
C) organization.
D) middleware.
Answer: B
Diff: 2 Page Ref: 59
38) The enterprise system architecture can be viewed from two different angles
...
the functional angle and the ________ angle.
A) system
B) network
C) decisional
D) logical
Answer: A
Diff: 2 Page Ref: 60
39) ERP vendors break the software up into ________ which organizations can
selectively implement to support their different functional areas.
A) programs
B) systems
C) applications
D) modules
Answer: D
Diff: 2 Page Ref: 60
40) ERP vendors embed their best business ________ in their software to help
businesses improve their productivity and performance.
A) decisions
B) products
C) practices
D) tasks
E) functions
Answer: C
Diff: 2 Page Ref: 61
41) If the ERP vendor's software and best practices do not match the organization's
needs, it may be necessary to ________ the ERP software.
A) proceduralize
B) customize
C) compartmentalize
D) individualize
E) upgrade
Answer: B
Diff: 2 Page Ref: 61
42) Manufacturing capacity is planned and optimized using the ________ module.
A) purchasing
B) sales & marketing
C) production
D) accounting
Answer: C
Diff: 2 Page Ref: 62
43) If a company wants to streamline their procurement processes, they would probably
choose to implement the ________ module.
A) inventory management
B) purchasing
C) logistics
D) finance
E) asset management
Answer: B
Diff: 3 Page Ref: 62
44) Order placement and schedule is handled in the ________ module.
A) sales and marketing
B) purchasing
C) logistics
D) finance
E) asset management
Answer: A
Diff: 2 Page Ref: 63
45) Employee data is managed in the ________ module.
A) database
B) purchasing
C) sales and marketing
D) credit management
E) human resource
Answer: E
Diff: 2 Page Ref: 63
46) The core of many ERP systems is the ________ module.
A) sales and marketing
B) purchasing
C) logistics
D) finance
E) process management
Answer: D
Diff: 3 Page Ref: 63
47) The ________ module provides tools and data warehousing capabilities.
A) self-service
B) project management
C) business intelligence
D) database
E) asset management
Answer: C
Diff: 3 Page Ref: 63
48) One benefit of the ________ module is that it helps companies comply with the
government rules of the Sarbanes-Oxley Act.
A) accounting
B) sales and marketing
C) production
D) finance
Answer: D
Diff: 3 Page Ref: 64
49) A ________ module helps customers get more direct access to applications such as
tracking the status of their orders.
A) self-service
B) project management
C) business intelligence
D) database
E) sales management
Answer: A
Diff: 3 Page Ref: 63
50) The ________ module uses data collection technologies such as RFID and bar
codes to improve resource allocation for cross-docking processes.
A) procurement
B) production
C) transportation
D) sales
E) accounting
Answer: A
Diff: 3 Page Ref: 64
51) The ________ tier acts as the intermediary between the client applications and the
database.
A) presentation
B) business
C) logical
D) middleware
Answer: B
Diff: 3 Page Ref: 65
52) Users input data in the ________ tier.
A) presentation
B) business
C) logical
D) application
E) database
Answer: A
Diff: 2 Page Ref: 65
53) In the ERP system, user ________ are set up to define access right for every user
in the portal.
A) security
B) web-services
C) roles
D) application
Answer: C
Diff: 2 Page Ref: 67
54) Research shows that large companies lose up to ________ per minute every time
their ERP system goes down.
A) $3K
B) $3.6M
C) $18K
D) $13K
E) $218K
Answer: D
Diff: 3 Page Ref: 68
55) A fully functioning ERP system needs a high availability ________ in order to
support the growth of the user population and its expansion out to the supply chain
partners.
A) database
B) application server
C) network
D) API
E) GUI
Answer: C
Diff: 3 Page Ref: 68
56) Online Analytical Processing is the foundation of the ________ module in ERP.
A) e-Commerce
B) business intelligence
C) performance management
D) project management
Answer: B
Diff: 2 Page Ref: 69
57) In a typical two-tier architecture, the server handles both the ________ and
database duties.
A) network
B) security
C) protocol control
D) application
E) user access
Answer: D
Diff: 3 Page Ref: 70
58) In the three-tier architecture, the application, database, and ________ layers are
separated into independent operating units.
A) network
B) security
C) protocol control
D) application
E) presentation
Answer: E
Diff: 3 Page Ref: 70
59) In the newer Web-based architecture, the ________ layer is split into the Web
Services tier and the Web Browser tier.
A) network
B) security
C) database
D) application
E) presentation
Answer: E
Diff: 3 Page Ref: 72
60) In ________ environments, clients only need access to the Internet and a standard
browser like Internet Explorer with a few plug-ins to interact with ERP applications.
A) server-centric
B) web-based
C) client-centric
D) n-tier client/server
Answer: A
Diff: 3 Page Ref: 72
61) The term ________ refers to system architectures that can have any number of
distinct tiers including 4-tiers and more.
A) frontier
B) m-tier
C) n-tier
D) 4 tier
E) none of the above
Answer: C
Diff: 3 Page Ref: 65
62) The GUI resides on the ________ tier.
A) logical
B) presentation
C) GUI
D) Application
E) none of the above
Answer: B
Diff: 2 Page Ref: 65
63) The ________ tier consists of a web browser and a reporting tool.
A) GUI
B) logical
C) presentation
D) application
E) database
Answer: D
Diff: 3 Page Ref: 66
64) The global organization that helps to promote the use of a common language is
called ________.
A) NCAA
B) OASIS
C) ICANN
D) Netweaver
E) none of the above
Answer: B
Diff: 3 Page Ref: 67
65) The web-based portal is part of the ________ tier.
A) application
B) presentation
C) GUI
D) Application
E) none of the above
Answer: B
Diff: 2 Page Ref: 67
66) In the ERP system, user ________ are set up to define the access rights for each
and every functional user of the system.
A) accounts
B) GUIs
C) applications
D) roles
E) none of the above
Answer: D
Diff: 2 Page Ref: 67
67) Many ERP implementations fail to realize all the benefits because they don't provide
the system with enough network ________.
A) bandwidth
B) traffic
C) software
D) hardware
E) none of the above
Answer: A
Diff: 3 Page Ref: 68
68) Because of the tremendous load that an ERP system places on the corporate LAN
and WAN, it is crucial that companies go through network ________, when deploying
an ERP system.
A) implementations
B) upgrades
C) downtime
D) capacity planning
E) none of the above
Answer: D
Diff: 3 Page Ref: 68
69) Third party system integration can be done in either the portal or the ________
layer.
A) presentation
B) logical
C) GUI
D) application
E) none of the above
Answer: D
Diff: 3 Page Ref: 70
70) The IT infrastructure in organizations has moved from centralized to client-server
and ________.
A) distributed
B) recentralized
C) siloed
D) unmanageable
E) none of the above
Answer: A
Diff: 2 Page Ref: 71
71) The first generation of the distributed IT architecture involved ________ tiers.
A) one
B) two
C) three
D) n
E) none of the above
Answer: B
Diff: 2 Page Ref: 71
72) A drawback of the two-tier ERP architecture is that it requires expensive ________
for integrating other systems.
A) middleware
B) 1 tier systems
C) 3 tier systems
D) n-tier systems
E) none of the above
Answer: A
Diff: 3 Page Ref: 71
73) The GUI resides on the ________ layer of the three-tier system architecture.
A) logical
B) presentation
C) GUI
D) application
E) none of the above
Answer: B
Diff: 2 Page Ref: 72
74) The ________ client/server architecture has been shown to improve performance
for groups with a large number of users.
A) one-tier
B) two-tier
C) three-tier
D) four-tier
E) none of the above
Answer: C
Diff: 3 Page Ref: 73
75) The next generation web-based architectures will help to deliver ________ access
to ERP systems.
A) limited
B) centralized
C) short term
D) ubiquitous
E) none of the above
Answer: D
Diff: 2 Page Ref: 74