Test 24 July 2015, questions and answers PDF

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Management Information Systems, 12e (Laudon) Chapter 14 Managing Projects 1) Between 30 and 40 percent of all software projects are "runaway" projects that far exceed original schedule and budget projections. Answer: TRUE Diff: 2 Page Ref: 529 AACSB: Reflective Thinking CASE: Content Objective: 14.1 2) An information system project's scope is directly related to its business requirements. Answer: TRUE Diff: 2 Page Ref: 530 AACSB: Analytic Skills CASE: Analysis Objective: 14.1 3) The information systems steering committee is composed of information systems managers and end-user managers responsible for overseeing several specific information systems projects. Answer: FALSE Diff: 3 Page Ref: 531-532 AACSB: Reflective Thinking CASE: Content Objective: 14.2 4) An information systems plan contains a statement of corporate goals and specifies how information technology will support the attainment of those goals. Answer: TRUE Diff: 2 Page Ref: 532 AACSB: Reflective Thinking CASE: Content Objective: 14.2 5) If an intended benefit of an IT project is improved decision making, managers should develop a set of metrics to quantify the value of an improved decision. Answer: TRUE Diff: 2 Page Ref: 532 AACSB: Reflective Thinking CASE: Content Objective: 14.2

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6) Scoring models are used most commonly to support decisions rather than as the final arbiters of system selection. Answer: TRUE Diff: 2 Page Ref: 536 AACSB: Reflective Thinking CASE: Content Objective: 14.2 7) Transaction and clerical systems that displace labor and save space typically produce more measurable, tangible benefits than management information systems. Answer: TRUE Diff: 3 Page Ref: 537 AACSB: Reflective Thinking CASE: Content Objective: 14.3 8) More timely information is a tangible benefit of information systems. Answer: FALSE Diff: 2 Page Ref: 537 AACSB: Reflective Thinking CASE: Content Objective: 14.3 9) Intangible benefits cannot be immediately quantified but may lead to quantifiable gains in the long run. Answer: TRUE Diff: 1 Page Ref: 537 AACSB: Reflective Thinking CASE: Content Objective: 14.3 10) A benefit of using TCO analysis to evaluate an information technology investment is that it is able to incorporate intangible and "soft" factors such as benefits and complexity costs. Answer: FALSE Diff: 2 Page Ref: 538 AACSB: Reflective Thinking CASE: Content Objective: 14.3 11) Real options pricing models use the concept of options valuation borrowed from the financial industry. Answer: TRUE Diff: 1 Page Ref: 538 AACSB: Reflective Thinking CASE: Content Objective: 14.3

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12) The systems analyst is the catalyst for the entire change process and is responsible for making sure that everyone involved accepts the changes created by a new system. Answer: TRUE Diff: 1 Page Ref: 541 AACSB: Reflective Thinking CASE: Content Objective: 14.4 13) The larger the systems project, the more risk the project runs in terms of being completed on time, within budget, and according to project requirements. Answer: TRUE Diff: 1 Page Ref: 540 AACSB: Reflective Thinking CASE: Content Objective: 14.4 14) The relationship between users and information systems specialists has traditionally been a problem area for information systems implementation efforts. Answer: TRUE Diff: 1 Page Ref: 541 AACSB: Reflective Thinking CASE: Content Objective: 14.4 15) User concerns and designer concerns are usually the same at the beginning of the project but may diverge later as the system is built. Answer: FALSE Diff: 2 Page Ref: 541 AACSB: Reflective Thinking CASE: Content Objective: 14.4 16) A Gantt chart graphically depicts project tasks and their interrelationships. Answer: FALSE Diff: 2 Page Ref: 543 AACSB: Reflective Thinking CASE: Content Objective: 14.5 17) Counterimplementation refers to a deliberate strategy to thwart the implementation of an information system or an innovation in an organization. Answer: TRUE Diff: 2 Page Ref: 546 AACSB: Reflective Thinking CASE: Content Objective: 14.5

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18) Mandatory use of a system is one effective way of overcoming user resistance to an information system. Answer: FALSE Diff: 2 Page Ref: 546 AACSB: Analytic Skills CASE: Analysis Objective: 14.5 19) The design of jobs, health issues, and the end-user interface of information systems are all considerations in the field of ergonomics. Answer: TRUE Diff: 2 Page Ref: 546 AACSB: Reflective Thinking CASE: Content Objective: 14.5 20) The goal of sociotechnical design is to create systems with better user interfaces and contribute to fewer health issues. Answer: FALSE Diff: 3 Page Ref: 548 AACSB: Reflective Thinking CASE: Content Objective: 14.5 21) On average, private sector IT projects underestimated budget and delivery time of systems by ________ percent. A) 30 B) 40 C) 50 D) 60 Answer: C Diff: 2 Page Ref: 529 AACSB: Reflective Thinking CASE: Content Objective: 14.1 22) The major variables in project management are A) scope, time, cost, and performance. B) scope, time, cost, quality, and risk. C) time, cost, quality, performance, and risk. D) time, cost, scope, and performance. Answer: B Diff: 2 Page Ref: 530 AACSB: Reflective Thinking CASE: Content Objective: 14.1

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23) At the top of the management structure for information systems projects in a large company is A) project management. B) the CIO. C) the corporate strategic planning group. D) the IS steering committee. Answer: C Diff: 2 Page Ref: 531 AACSB: Reflective Thinking CASE: Content Objective: 14.2 24) The ________ is directly responsible for the individual systems project. A) project management group B) project team C) IS steering committee D) corporate strategic planning committee Answer: B Diff: 2 Page Ref: 532 AACSB: Reflective Thinking CASE: Content Objective: 14.2 25) The ________ reviews and approves plans for systems in all divisions. A) project management group B) project team C) IS steering committee D) corporate strategic planning committee Answer: C Diff: 2 Page Ref: 532 AACSB: Reflective Thinking CASE: Content Objective: 14.2 26) The ________ consists of systems analysts, specialists from the relevant end-user business areas, application programmers, and perhaps database specialists. A) project management group B) project team C) IS steering committee D) corporate strategic planning committee Answer: B Diff: 2 Page Ref: 532 AACSB: Reflective Thinking CASE: Content Objective: 14.2

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27) A road map indicating the direction of systems development, the rationale, the current systems, new developments to consider, the management strategy, the implementation plan, and the budget is called a(n) A) project plan. B) portfolio analysis. C) information systems plan. D) enterprise analysis. Answer: C Diff: 2 Page Ref: 532 AACSB: Reflective Thinking CASE: Content Objective: 14.2 28) A CSF approach to establishing an enterprise's information requirements is especially suitable for A) distinguishing between individual and organizational objectives. B) identifying the key entities and attributes of the organization's data. C) understanding how organizational units define critical data. D) the development of DSSs and ESSs. Answer: D Diff: 3 Page Ref: 534 AACSB: Reflective Thinking CASE: Content Objective: 14.2 29) The principal method used in CFS analysis is to A) inventory all of the organization's information systems projects and assets and assign risk levels. B) perform a weighted comparison of the criteria used to evaluate a system. C) survey a large sample of managers on their objectives, decision-making process, and uses and needs for data and information. D) interview a small number of top managers to identify their goals and criteria for achieving success. Answer: D Diff: 2 Page Ref: 534 AACSB: Reflective Thinking CASE: Content Objective: 14.2

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30) In CFS analysis, it is important to A) interview as many employees from different levels of the company as possible. B) create a broad inquiry into the various types of information used in the company. C) distinguish between organizational and individual CSFs. D) identify operational managers that can accurately portray the day-to-day information needs of the firm. Answer: C Diff: 1 Page Ref: 534 AACSB: Reflective Thinking CASE: Content Objective: 14.2 31) The central method used in a portfolio analysis is to A) inventory all of the organization's information systems projects and assets. B) perform a weighted comparison of the criteria used to evaluate a system. C) survey a large sample of managers on their objectives, decision-making process, and uses and needs for data and information. D) interview a small number of top managers to identify their goals and criteria for achieving success. Answer: A Diff: 2 Page Ref: 534 AACSB: Reflective Thinking CASE: Content Objective: 14.2 32) In using a portfolio analysis to determine which IT projects to pursue, you would A) select the most low-risk projects from the inventory. B) limit work to those projects with great rewards. C) select only low-risk, high-reward projects. D) balance high-risk, high reward projects with lower-risk projects. Answer: D Diff: 2 Page Ref: 535 AACSB: Reflective Thinking CASE: Content Objective: 14.2 33) Which method would you use is used to develop risk profiles for a firm's information system projects and assets? A) information systems plan B) scoring model C) portfolio analysis D) CSF Answer: C Diff: 2 Page Ref: 534 AACSB: Reflective Thinking CASE: Content Objective: 14.2 7 Copyright © 2012 Pearson Education, Inc.

34) The central method used in a scoring model is to A) inventory all of the organization's information systems projects and assets. B) perform a weighted comparison of the criteria used to evaluate a system. C) survey a large sample of managers on their objectives, decision-making process, and uses and needs for data and information. D) interview a small number of top managers to identify their goals and criteria for achieving success. Answer: B Diff: 2 Page Ref: 535 AACSB: Reflective Thinking CASE: Content Objective: 14.2 35) You have been hired by a pharmaceutical company to evaluate its inventory of systems and IT projects. Which types of projects would be best avoided? A) any high risk projects B) any low-benefit projects C) all high-risk, low benefit projects D) none, any project might be beneficial Answer: C Diff: 2 Page Ref: 535 AACSB: Analytic Skills CASE: Analysis Objective: 14.2 36) Which method is used to assign weights to various features of a system? A) information systems plan B) scoring model C) portfolio analysis D) CSF Answer: B Diff: 1 Page Ref: 535 AACSB: Reflective Thinking CASE: Content Objective: 14.2 37) The criteria used for evaluation in a scoring model are usually determined by A) lengthy discussions among the decision-making group. B) a CSF analysis. C) the IS steering committee. D) systems analysts. Answer: A Diff: 3 Page Ref: 535 AACSB: Reflective Thinking CASE: Content Objective: 14.2

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38) All of the following are intangible benefits of information systems except A) improved asset utilization. B) increased organizational learning. C) improved operations. D) reduced workforce. Answer: D Diff: 2 Page Ref: 537 AACSB: Reflective Thinking CASE: Content Objective: 14.3 39) Which of the following is not a tangible benefit of information systems? A) reduced rate of growth in expenses B) lower computer expenses C) improved resource control D) increased productivity Answer: C Diff: 2 Page Ref: 537 AACSB: Reflective Thinking CASE: Content Objective: 14.3 40) The worth of systems from a financial perspective essentially revolves around the issue of A) CSFs. B) adherence to information requirements. C) asset utilization. D) return on invested capital. Answer: D Diff: 1 Page Ref: 536-537 AACSB: Analytic Skills CASE: Evaluation Objective: 14.3

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41) You are using a capital budgeting method to assess the worth of your company's new information system. Which of the following costs would you include in measuring the cash outflow? A) increased sales of products B) hardware and software expenditures C) labor expenditures D) reduced costs in production and operation E) both A and D F) both B and C G) A, B, C and D Answer: F Diff: 2 Page Ref: 534 AACSB: Analytic Skills CASE: Evaluation Objective: 14.3 42) In working with ROPMs and options valuation, a call option is a(n) A) obligation to purchase an asset at a later date at a fixed price. B) obligation to either purchase or sell an asset at a later date at a strike price. C) right to purchase an asset a later date at a strike price. D) right to purchase or sell an asset a later date at a fixed price. Answer: D Diff: 2 Page Ref: 538 AACSB: Reflective Thinking CASE: Content Objective: 14.3 43) The principal capital budgeting models for evaluating information technology projects are the payback method, the accounting rate of return on investment (ROI), the net present value, and the A) future present value. B) internal rate of return. C) external rate of return. D) ROPM. Answer: B Diff: 2 Page Ref: 538 AACSB: Reflective Thinking CASE: Content Objective: 14.3

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44) ROPMs value information systems similar to stock options, in that A) ROPMs can be bought and sold like stocks. B) a company's worth can be evaluated by the worth of their ROPMs. C) initial expenditures on IT projects are seen as creating the right to pursue and obtain benefits from the system at a later date. D) expenditures and benefits from IT projects are seen as inflows and outflows of cash that can be treated themselves like options. Answer: C Diff: 2 Page Ref: 539 AACSB: Analytic Skills CASE: Analysis Objective: 14.3 45) To best evaluate, from a financial standpoint, an IT investment whose benefits cannot be firmly established in advance, you would use A) capital budgeting. B) the real option pricing model. C) a scoring model. D) the net present value. Answer: B Diff: 2 Page Ref: 538 AACSB: Analytic Skills CASE: Analysis Objective: 14.3 46) The level of a project's risk is influenced primarily by A) project size, project structure, and the level of technical expertise. B) project cost, project scope, and the implementation plan. C) project scope, project schedule, and project budget. D) project size, project scope, and the level of technical expertise. Answer: A Diff: 2 Page Ref: 540 AACSB: Reflective Thinking CASE: Content Objective: 14.4 47) The project risk will rise if the project team and the IS staff lack A) legacy applications as a starting point. B) good equipment. C) the required technical expertise. D) financial studies and plans. Answer: C Diff: 3 Page Ref: 540 AACSB: Reflective Thinking CASE: Content Objective: 14.4

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48) The organizational activities working toward the adoption, management, and routinization of a new information system are called A) production. B) maintenance. C) implementation. D) acceptance. Answer: C Diff: 1 Page Ref: 540 AACSB: Reflective Thinking CASE: Content Objective: 14.4 49) Which of the following is not one of the activities of the systems analyst? A) acting as a change agent B) communication with users C) mediating between competing interest groups D) formulation of capital budgeting models Answer: D Diff: 1 Page Ref: 541 AACSB: Reflective Thinking CASE: Content Objective: 14.4 50) One example of an implementation problem is A) poor user interface. B) inadequate user training. C) project running over budget. D) changes in job activities and responsibilities. Answer: B Diff: 2 Page Ref: 540-542 AACSB: Analytic Skills CASE: Analysis Objective: 14.4 51) According to your reading of the chapter, change management is a process that A) should be addressed before a project is developed. B) begins when a project is implemented. C) is used primarily to mandate user acceptance. D) must be addressed in all systems development. Answer: A Diff: 1 Page Ref: 540-542 AACSB: Analytic Skills CASE: Evaluation Objective: 14.4

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52) Users prefer systems that A) are oriented to facilitating organizational tasks and solving business problems. B) work with existing DBMS. C) are able to provide optimum hardware and software efficiency. D) are capable of storing much more data than they need. Answer: A Diff: 2 Page Ref: 541 AACSB: Reflective Thinking CASE: Content Objective: 14.4 53) The communications gap between users and systems designers is created by their differences in A) backgrounds. B) interests. C) priorities. D) A and B. E) B and C. F) all of the above. Answer: F Diff: 1 Page Ref: 541 AACSB: Reflective Thinking CASE: Content Objective: 14.4 54) Which of the following types of projects is most likely to fail? A) integration of an third-party automated payment system B) replacement of middleware with Web services for legacy application integration C) a business process redesign project that restructures workflow and responsibilities D) redesigning a user interface to an online investment site Answer: C Diff: 2 Page Ref: 542 AACSB: Analytic Skills CASE: Evaluation Objective: 14.4 55) Which of the following is not a responsibility of effective change management? A) integrating legacy systems B) dealing with fear and anxiety about new systems C) training users of the new system D) enforcing user participation at all stages of system development Answer: A Diff: 2 Page Ref: 542 AACSB: Analytic Skills CASE: Analysis Objective: 14.4

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56) Which of the following tools would you use to control risk factors in an information systems project? A) internal integration tools B) external integration tools C) formal planning tools and formal control tools D) A and B E) A and C F) all of the above Answer: F Diff: 1 Page Ref: 543-546 AACSB: Reflective Thinking CASE: Content Objective: 14.5 57) Internal integration tools A) enable a project to have sufficient technical support for project management and development. B) enable a project manager to properly document and monitor project plans. C) portray a project as a network diagram with numbered nodes representing project tasks. D) consist of ways to link the work of the implementation team with users at all organization levels. Answer: A Diff: 3 Page Ref: 543 AACSB: Reflective Thinking CASE: Content Objective: 14.5 58) An example of using an internal integration tool would be to A) define task dependencies. B) include user representatives as active members of the project team. C) create a PERT chart. D) hold frequent project team meetings. Answer: D Diff: 2 Page Ref: 543 AACSB: Analytic Skills CASE: Synthesis Objective: 14.5

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59) Formal planning and control tools A) enable a project to have sufficient technical support for project management and development. B) enable a project manager to properly document and monitor project plans. C) portray a project as a network diagram with numbered nodes representing project tasks. D) consist of ways to link the work of the implementation team with users at all organization levels. Answer: B Diff: 2 Page Ref: 543 AACSB: Reflective Thinking CASE: Content Objective: 14.5 60) External integration tools A) enable a project to have sufficient technical support for project management and development. B) enable a project manager to properly document and monitor project plans. C) portray a project as a network diagram with numbered nodes representing project tasks. D) consist of ways to link the work of the implementation team with users at all organization levels. Answer: D Diff: 2 Page Ref: 545 AACSB: Reflective Thinking CASE: Content Objective: 14.5 61) An example of using an external integration tool would be to A) define task dependencies. B) include user representatives as active mem...