Product Description


Multiple Choice

1. __________ consists of powerful software tools to discover and extract knowledge from text documents.

a) Document mining

b) Master data management

c) Knowledge mining

d) Text mining

2. What is the goal of data management?

a) To store data and documents in multiple locations to insure that they are accessible to everyone on demand.

b) To capture financial data in real-time from transactions and Web sites.

c) To provide the infrastructure and tools to transform raw data into usable corporate information of the highest quality.

d) To link databases of supply chain partners so all data can be shared.

3. As a general rule, in order to maximize earnings, companies invest in data management technologies that increase:

a) the opportunity to earn revenues.

b) the ability to cut expenses.

c) employee turnover.

d) both a and b

4. Which of the following is not a reason why managers and information workers may be constrained by data?

a) data are incomplete

b) data are stored in a data warehouse

c) data are out of context

d) data are so overwhelming that they require too much time to analyze

5. In the healthcare industry, data errors __________.

a) increase healthcare costs by billions of dollars

b) have minimized healthcare costs

c) have no impact on patient care

d) have been eliminated by the use of data warehousing

6. Each year, billions of dollars are wasted in the healthcare supply chain because of the lack of __________.

a) data synchronization

b) data processing

c) real-time data

d) document management

7. __________ is a structured approach for capturing, storing, processing, integrating, distributing, securing, and archiving data effectively throughout their life cycle.

a) Data mining

b) Data management

c) Metadata

d) Data visualization

8. According to the principle of __________, the more recent the data, the more valuable they are.

a) data uncertainty

b) 90/90 data use

c) diminishing data value

d) data in context

9. According to the principle of __________, data must be integrated, processed, analyzed, and formatted into “actionable information.”

a) data uncertainty

b) 90/90 data use

c) diminishing data value

d) data in context


10. According to the principle of __________, a majority of data lose much of their value after three months.

a) data uncertainty

b) 90/90 data use

c) diminishing data value

d) data in context

11. Although vendors may claim that their __________ solution creates “a single version of the truth,” this claim is probably not true.

a) master data management


c) data mining

d) client/server

12. Which is not a benefit of having a unified view of customers?

a) More accurate customer data to support marketing, sales, support, and service initiatives.

b) Better responsiveness to ensure that customer service representatives have up-to-date, reliable information on the customers.

c) Faster transaction processing by organizing the data in one location.

d) Better revenue management and more responsive business decisions.

13. Businesses that collect data about employees and customers have the legal duty to __________.

a) destroy that data after 30 days

b) protect that data

c) retain that data for seven years

d) Both a and b

14. All companies create __________, which are documents that record business activities and functions such as contracts, research and development, accounting source documents, memos, and customer/client communications.

a) business records

b) transactions

c) computer files

d) databases

15. A computer system organizes data into a hierarchy that begins with __________, which are the smallest unit of data a computer can process.

a) bits

b) attributes

c) fields

d) bytes

16. Customer name, invoice number, and order date are examples of __________.

a) attributes

b) bytes

c) sectors

d) primary keys

17. Which of the following best represents a unique identifier field or primary key?

a) zip code

b) customer last name

c) product type

d) product ID

18. Records can be arranged in several ways on a storage medium. The arrangement of records determines:

a) how individual records can be accessed.

b) how long it takes to access records.

c) how individual records can be accessed and how long it takes to access them.

d) the storage media used for storage.

19. In __________ file organization, which is the way files are organized on tape, data records must be retrieved in the same physical sequence in which they are stored.

a) direct

b) random

c) sequential

d) primary

20. Magnetic tape uses __________ file organization, whereas magnetic disks and DVDs use __________ file organization.

a) sequential; direct

b) primary; secondary

c) random; direct

d) random; sequential

21. __________ programs can provide access to all organizational data and overcome many of the problems associated with data file environments.

a) Sequential data

b) Database management

c) Business record


22. Disadvantages of centralized databases are all of the following except:

a) they are vulnerable to a single point of failure.

b) when users are widely dispersed and need data manipulations, they can experience transmission delays.

c) when the centralized database computer fails to function properly, all users are affected.

d) much more expensive to set up and maintain than a distributed database.

23. An advantage of __________ is that they provide the response speed of localized files without the need to replicate all changes in multiple locations.

a) centralized databases

b) replicated databases

c) partitioned databases

d) file systems

24. Database management systems range in size and capabilities from the simple __________ to full-featured __________ solutions.

a) Microsoft Access; Oracle

b) Microsoft Excel; Microsoft Access

c) LANs; DB2

d) Oracle; DB2

25. Which is not an advantage and capability of a DBMS?

a) security

b) audit trail

c) backup

d) physical view

26. Being a smart company involves each of the following except:

a) having on-demand access to relevant data.

b) being able to understand the data, usually with the help of data visualization tools.

c) organizing data in a centralized database management system.

d) using what you learn from the data to increase productivity or profitability.

27. The main difference between a database and data warehouse is that:

a) databases are designed and optimized to store data, whereas data warehouses are designed and optimized to respond to analysis questions that are critical for a business.

b) databases are designed and optimized to analyze data, whereas data warehouses are designed and optimized to store data for sharing.

c) databases are designed to detect trends in the data, whereas data warehouses are designed to support supply chains.

d) databases are designed to support traditional commerce, whereas data warehouses are designed to support e-commerce.

28. __________ for banking and debit cards are designed to ensure that every transaction gets recorded and processed online and in real-time.

a) File systems

b) Database systems

c) OLAP systems

d) Data warehouses

29. A financial institution’s databases are __________ because every deposit, withdrawal, loan payment, or other transaction adds or changes data, which makes data analysis __________.

a) poor quality; unnecessary

b) high quality; easy

c) volatile; too difficult

d) volatile; easy

30. Data warehouses are designed as __________ systems, meaning that the data can be queried and analyzed much more efficiently than online databases.

a) online transaction processing (OLTP)

b) online analytical processing (OLAP)

c) real-time transaction

d) ETL

31. The credit card company Capital One uses __________ to track each customer’s profitability and uses that score to determine the level of customer service.


b) a centralized database

c) strategic database management systems

d) active data warehousing

32. Which of the following statements about data warehousing is false?

a) Data in the data warehouse are constantly updated and volatile.

b) Many organizations built data warehouses because they were frustrated with inconsistent decision support data.

c) Data warehouses are infrastructure investments that companies make to support current and future decision making.

d) Data warehouses deliver information more effectively and efficiently than database systems.

33. Which is not a characteristic of a data warehouse?

a) Data are organized by subject, such as customer, vendor, or product.

b) Data are coded in a consistent manner.

c) Data are kept for many years to be used for identifying trends, forecasting, and comparisons over time.

d) Most applications of data warehousing are in real-time.

34. An extremely economical and effective method of delivering data from a data warehouse to decision makers throughout the enterprise is via __________.

a) data marts

b) data cubes

c) an intranet

d) operational data stores

35. Data warehousing is most appropriate for organizations that any of the following characteristics except:

a) end users need to access large amounts of data.

b) the organization serves a large, diverse customer base.

c) end-users perform a lot of data analysis.

d) operational data needed to support business processes are centralized.

36. The high costs of data warehouses can make them too expensive for a company to implement. As an alternative, many firms create lower-cost, scaled-down __________.

a) data marts

b) data stores

c) multidimensional databases

d) SBUs

37. Advantages of data marts over data warehouses are all of the following except:

a) data marts require shorter lead times for implementation, often less than 90 days.

b) data marts allow for local rather than central control, giving end-users more power or control.

c) data marts have higher quality and more complete enterprise data.

d) data marts are easier to understand and navigate because they contain less data.

38. Despite their potential benefits, implementations of large data warehouses may fail. Reasons for data warehousing failures are all of the following except:

a) vendors overselling capabilities.

b) lack of attention to cultural issues.

c) poor data quality.

d) integration with operations.

39. __________ are facilities containing mission-critical ISs and components that deliver data and IT services to the enterprise.

a) Data servers

b) Data marts

c) Data centers

d) Data warehouses

40. A(n) __________ is a database for transaction processing systems (TPSs) that uses data warehouse concepts to provide clean data.

a) data mart

b) operational data store

c) strategic data store

d) multidimensional database

41. Companies implement __________ systems to retain and archive their business records that are not needed for current operations or decisions, but that must be accessible for legal or auditing obligations.

a) electronic records management

b) database management

c) archive management

d) infrastructure management

42. To be retrievable, a company’s electronic records must be __________ like structured data in a database.

a) organized

b) indexed

c) organized and indexed

d) organized, indexed, and encrypted

43. Creating backups of records is not a form of electronic records management (ERM) because:

a) the content on backups is not organized so that it can be accurately and easily retrieved.

b) business records and documents may need to be modified.

c) records and documents cannot be stored together.

d) the requirement to save records is new.

44. Nearly __________ percent of U.S. corporations become engaged in lawsuits and at any one time, the average $1 billion company in the U.S. faces 147 lawsuits.

a) 25

b) 50

c) 75

d) 90

45. __________ is the process of finding, gathering, and filtering of electronic files and information in preparation for trial, legal or regulatory investigation, or administrative action as required by law.

a) Archiving

b) Discovery

c) Electronic discovery

d) Litigation


46. Data management is important because no enterprise can be effective without high quality data that is accessible when needed.

47. A spreadsheet mistake created an error that cost TransAlta $24 million because they bought power transmission hedging contracts at higher prices than it would have if the decision had been based on accurate information.

48. Every day, healthcare administrators and others in the healthcare supply chain waste up to 10 percent of their time correcting data errors at an estimated cost of $20 per error to correct.

49. According to the principle of 90/90 data use, most organizations cannot operate at peak performance with blind spots (lack of data availability) of 90 days or longer.

50. According to the 90/90 data-use principle, a majority of stored data, as high as 90 percent, is frequently accessed after 90 days.

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