The Business Of Information Technology

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Question 1
Free
Multiple Choice

This is a plan designed to counter a manmade or natural disaster that could cripple an enterprise.

Choose correct answer/s
A

Business Continuity Plan

B

Disaster Recovery Plan

C

Business Disaster Plan

D

Disaster Business Case

E

Business-IT Maturity Model

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Question 2
Free
Multiple Choice

Which of the following should a manager expect from the IS organization?

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A

Promoting enterprise security.

B

Participating in setting and implementing strategic direction.

C

Innovating current processes.

D

Managing data, information and knowledge

E

All of the above

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Question 3
Free
Multiple Choice

According to the research by Peter Weill, a firm that boosts investments in infrastructure is typical of those firms with a focus on (1) _______ and a firm that boosts investments in transaction systems is typical of those firms with a focus on (2) ______

Choose correct answer/s
A

(1) transactions (2) connections

B

(1) savings (2) expansion

C

(1) cost (2) ability

D

(1) agility (2) cost

E

(1) ability (2) agility

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Question 4
Free
Multiple Choice

The responsibility of the IT organization is to:

Choose correct answer/s
A

Manage core business functions like selling, accounting and manufacturing.

B

Partner with business managers to ensure the right IS exists to support the business strategy.

C

Set the business strategy.

D

Have sole responsibility for building information systems for the organization.

E

Design business processes.

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Question 5
Free
Multiple Choice

A company that seeks an IT portfolio that lowers costs as the primary business objective will be more likely to increase spending on ___________ because these applications can help automate processes.

Choose correct answer/s
A

strategic systems

B

infrastructure

C

informational systems

D

transactional systems

E

social media

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Question 6
Multiple Choice

This method of IT funding is the most equitable, as the costs associated with IT are based on use. However, it can be difficult and tedious to calculate the usage costs.

Choose correct answer/s
A
Allocation
B
Corporate budgeting
C
Usage
D
Distributed
E
Chargeback
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Question 7
Multiple Choice

Sam has just purchased 10 new high speed color laser printers for his company. He is very excited because he got a 40% discount and paid only $2,990 for each unit. His boss, Joe, wants to know things such as operating costs, support, overhead, etc. for the printers. Joe wants to know this value:

Choose correct answer/s
A
RCO
B
TCO
C
ROI
D
NPV
E
EVM
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Question 8
Multiple Choice

Activity based costing _____________

Choose correct answer/s
A
groups costs into meaningful buckets that are then distributed based on the activity or product they support.
B
is useful for allocating small project work.
C
charges all costs to "cost centers".
D
considers only initial capital investments.
E
calculates ongoing maintenance costs.
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Question 9
Multiple Choice

This financial calculation provides a percentage rate that measures the relationship between the amount the business gets back from an investment and the amount invested.

Choose correct answer/s
A
IRR
B
ROI
C
Payback
D
NPV
E
EVA
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Question 10
Multiple Choice

Scorecards provide a summary of information gathered over a period of time. Another common IT monitoring tool is the _____________ .

Choose correct answer/s
A
baseline
B
metrics
C
portfolio
D
dashboard
E
monitor
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Question 11
Multiple Choice

Joe works for a company where the IT department charges him for the number of CRM login accounts that are in his department. What type of IT funding model is his company deploying?

Choose correct answer/s
A
Allocation
B
Corporate budgeting
C
Usage
D
TCO
E
Chargeback
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Question 12
Multiple Choice

Denise works for a company where the IT department charges her department for actual usage of a SharePoint server, determining how often users log in and how much storage space her department consumes. What type of IT funding model is the company deploying?

Choose correct answer/s
A
Allocation method
B
Corporate budget method
C
Usage method
D
Distributed method
E
Chargeback method
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Question 13
Multiple Choice

To justify an IT investment and receive necessary support and approval, a manager must often create a(n) ________________ .

Choose correct answer/s
A
IT portfolio
B
community plan
C
business case
D
workflow diagram
E
business technology plan
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Question 14
Multiple Choice

Building a business case for an IT investment:

Choose correct answer/s
A
Allows management to establish priorities for investing in different projects.
B
Helps gain commitment for the IT investment from business managers.
C
Creates a basis for monitoring the investment.
D
Identifies the benefits of the investment.
E
All of the above.
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Question 15
Multiple Choice

Critical to the business case is the identification of both _________ and ________ .

Choose correct answer/s
A
costs, risks
B
costs, benefits
C
advantages, disadvantages
D
assumptions, risks
E
benefits, detriments
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Question 16
Multiple Choice

A local marketing firm is considering launching a new and extensive social media marketing campaign. This investment of resources is being looked at through the length of the project since it is anticipated to last at least 5 years. What financial calculation should be used to compute the investment's value, taking into account the time value of money?

Choose correct answer/s
A
ROI
B
NPV
C
EVA
D
IRR
E
TCO
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Question 17
Multiple Choice

Mary is recommending IT investments in the neighborhood of $250 million for her company. However, the board is hesitant since it's such as capital-intensive project. If the project fails the company could go out of business. What financial calculation should they use?

Choose correct answer/s
A
ROI
B
NPV
C
EVA
D
IRR
E
FV
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Question 18
Multiple Choice

A CIO must spend part of the day performing _____ tasks and the some part of the day working on operational tasks. Rarely can a CIO focus on just one task in any given day.

Choose correct answer/s
A
Administrative
B
Strategic
C
Database
D
Financial
E
Technology
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Question 19
Multiple Choice

In the early days of IT, the CIO would report to the ____ as IT was seen as a way to control costs. As technology has become more strategic and able to deliver a competitive advantage, CIOs now report directly to the ____ .

Choose correct answer/s
A
CFO; CEO
B
CEO; CFO
C
CFO; COO
D
COO; CEO
E
CEO; CTO
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Question 20
Multiple Choice

Which dimension of the balanced scorecard answers the question "How do customers see us?"

Choose correct answer/s
A
Customer perspective
B
Innovating and learning perspective
C
Internal business perspective
D
Financial perspective
E
Supplier perspective
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