Deck 9: Business and Enterprise Resource Planning Systems

Question 1

Which of the following is always a common feature of relational databases and ERP systems?

A) Tables.
B) Forms.
C) Reports.
D) Queries.

Answer 1

A

Question 2

All of the following can contribute to ERP implementation failure except:

A) Redesigning business processes to fit the ERP system.
B) Lack of top management leadership.
C) Inadequate education and training.
D) An implementation team composed of IT experts.

Answer 2

A

Question 3

All of the following are characteristics of ERP systems except:

A) Modular.
B) Relational.
C) Spreadsheet-based.
D) Database tables.

Answer 3

B

Question 4

A corporate travel agent buys airline tickets for managers using Travelocity. The transaction is best described as:

A) B2B.
B) B2C.
C) C2C.
D) G2C.

Question 5

eBay is an example of _____ e-commerce.

A) C2C.
B) G2C.
C) C2B.
D) B2B.

Question 6

Banks operating in an e-business format can reduce costs related to:

A) Internal control.
B) Computer depreciation.
C) Transaction processing.
D) Advertising.

Question 7

Which of the following is a common module in most ERP systems?

A) Transaction processing.
B) Income tax reporting.
C) Financial statement analysis.
D) Financial management.

Question 8

Which ERP module is most closely associated with an organization's payroll process?

A) Customer relationship management.
B) Human resource management.
C) Financial management.
D) Supply chain management.

Question 9

Which of the following statements regarding e-business and traditional business is most true?

A) E-business uses computer networks; traditional business does not.
B) Customer distrust is an issue in e-business, but not in traditional business.
C) Traditional businesses are more expensive to operate than e-businesses.
D) E-business may require different types of internal control than traditional business.

Question 10

All varieties of taxpayers can access information from the web site of the California Franchise Tax Board (FTB). Therefore, the FTB is participating in which form(s) of e-commerce: (i) G2B, (ii) B2B, (iii)G2C.

A) i and ii only.
B) i and iii only.
C) ii and iii only
D) i, ii and iii.

Question 11

The organizational commitment associated with ERP systems includes: (i) psychological aspects, (ii) financial aspects.

A) i only.
B) ii only.
C) Both i and ii.
D) Neither i nor ii.

Question 12

Music-sharing networks can best be classified as:

A) C2C.
B) C2B.
C) B2B.
D) M2M.

Question 13

Which of the following is the best example of G2C e-commerce?

A) Edgar.
B) Internal Revenue Service.
C) Travelocity.
D) Dell.

Question 14

Compatible ERP systems provide a good match between software and:

A) Hardware.
B) Organizational processes.
C) Internal controls.
D) Consultants.

Question 15

Which of the following is the most important defining feature of e-commerce?

A) Web sites.
B) Computer networks.
C) Virtual stores.
D) Proprietary networks.

Question 16

Which ERP module is most closely associated with an organization's acquisition/payment process?

A) Customer relationship management.
B) Human resource management.
C) Financial management.
D) Supply chain management.

Question 17

E-business offers benefits to companies in all of the following areas except:

A) Marketing.
B) Operating costs.
C) Product delivery.
D) Customer trust.

Question 18

ERP implementation projects involve: (i) business process issues, (ii) human resource issues, (iii) information technology issues.

A) i and ii only.
B) i and iii only.
C) ii and iii only.
D) i, ii and iii.

Question 19

Which of the following should occur first in an ERP implementation?

A) Select software.
B) Complete a cost-benefit analysis.
C) Change organizational culture.
D) Obtain organizational commitment.

Question 20

Which of the following forms of internal control is most applicable to both e-business and traditional business?

A) Identity authentication.
B) Separation of duties.
C) Data encryption.
D) Network security.

Question 21

The CEO of SRB Corporation told Wall Street analysis that the company's ERP system would reduce costs by 75% in the first year of implementation. The CEO probably omitted which ERP implementation step?

A) Obtain organizational commitment.
B) Communicate strategic goals clearly.
C) View ERP as an enterprise-wide venture.
D) Resolve multi-site issues.

Question 22

Private universities most clearly fit into which e-business category?

A) G2B.
B) B2C.
C) C2C.
D) E2C.

Question 23

State universities most clearly fit into which e-business category?

A) G2E.
B) B2C.
C) G2C.
D) E2C.

Question 24

Following the principles of data normalization will best address which of the following common causes of ERP failure?

A) Viewing ERP implementation as an information systems project.
B) Automating redundant processes.
C) Inaccurate data in the system.
D) Lack of top management support.

Question 25

In an enterprise resource planning system, which module is least likely to require a junction table?

A) Customer relationship management.
B) Financial management.
C) Supply chain management.
D) Transaction management.

Question 26

Data in which common ERP module is least likely to impact liabilities on a firm's balance sheet?

A) Human resource management.
B) Supply chain management.
C) Financial management.
D) Customer relationship management.

Question 27

Which ERP implementation step best addresses the problem of trying to keep everything the same after the software is installed?

A) Obtain organizational commitment.
B) Communicate strategic goals clearly.
C) View ERP as an enterprise-wide venture.
D) Resolve multi-site issues.

Question 28

SPR Corporation recently added an e-business component to its operations. Based on the benefits of e-business discussed in the text, SPR's financial statements are least likely to show:

A) Increased revenue.
B) Reduced costs.
C) Increased investment in fixed assets.
D) Increased cash flow from investing activities.

Question 29

A multi-disciplinary team developed a series of steps and goals related to ERP implementation. The team's plan would most clearly address:

A) Organizational commitment.
B) Multi-site issues.
C) Technical difficulties.
D) Unrealistic expectations.

Question 30

Which of the following is the best example of a common cause of ERP failure?

A) The company president chairs the multi-disciplinary implementation team.
B) Human resource managers set up hands-on training sessions after the system is in place.
C) The project's timeline spans several months.
D) All paper documents, such as purchase orders and customer invoices, are scanned into the system.

Question 31

Textbook publishers could be classified in which form(s) of e-business: (i) B2B, (ii) C2C, (iii) B2C.

A) i and ii only.
B) i and iii only.
C) ii and iii only.
D) i, ii and iii.

Question 32

Nicole works for LWR Corporation; LWR is about to start an ERP implementation. Nicole knows several colleagues in similar organizations who are experienced with LWR's new system and has asked them for advice. Their advice is least likely to address:

A) Unrealistic expectations.
B) Inaccurate data in the system.
C) A bad match between the system and LWR's business processes.
D) Significant technical difficulties.

Question 33

Constructing a flowchart prior to starting an ERP implementation is most likely to assist with:

A) Obtaining organizational commitment.
B) Resolving multi-site issues.
C) Ensuring data accuracy.
D) Communicating strategic goals clearly.

Question 34

One of the costs associated with e-business is customer distrust. Which of the following internal controls would most effectively overcome customer distrust?

A) Serially-numbered documents.
B) Separation of duties.
C) Firewalls.
D) Adequate documentation of business processes.

Question 35

Adhering to the principles of normalization in an ERP implementation is most likely to assist with:

A) Ensuring data accuracy.
B) Viewing ERP as an enterprise-wide venture.
C) Selecting compatible software.
D) Resolving multi-site issues.

Question 36

The CEO of SRB Corporation delegated ERP implementation to a team of information systems specialists. From that information alone, we can conclude:

A) The implementation will likely succeed.
B) The implementation will exceed its budget.
C) The implementation will take longer than expected.
D) The implementation may fail.

Question 37

Compared to traditional business, e-business can help organizations streamline operations in which parts of Porter's value chain: (i) primary activities, (ii) support activities.

A) i only.
B) ii only.
C) Both i and ii.
D) Neither i nor ii.

Question 38

Data in which common ERP modules are most likely to impact current assets on a firm's balance sheet: (i) customer relationship management, (ii) human resource management, (iii) supply chain management?

A) i and ii only.
B) i and iii only.
C) ii and iii only.
D) i, ii and iii.

Question 39

The CEO of SRB Corporation told Wall Street analysis that the company's ERP system would reduce costs by 75% in the first year of implementation. The CEO's comment is an example of:

A) Unrealistic expectations.
B) Inadequate education and training.
C) Poor project management.
D) Inaccurate data in the system.

Question 40

Which of the following is the best example of a common cause of ERP failure?

A) The vice-president of information systems chairs the implementation team.
B) A table in the ERP system contains three fields to track three different quality inspections.
C) The project may take a year to complete.
D) All paper documents, such as purchase orders and customer invoices, are reviewed before being scanned into the system.

Question 41

When using an ASP, the risk of compromised data would be addressed most effectively by:

A) providing ongoing employee training.
B) a SAS 70 audit. C encryption protocols.
D) the COSO ERM framework.

Question 42

Forms of e-business
Which e-business classification described in the text most clearly applies to each independent description below?
______ 1. Ashok completes an online application so his company can obtain a federal Small Business Administration loan.
______ 2. Barb buys birthday gifts online for her business clients.
______ 3. Burke finds his college roommate's e-mail address online.
______ 4. Diane, a college bookstore manager, orders introductory accounting texts from a publisher.
______ 5. Drew looks up information about his senator's voting record online.
______ 6. Opal responds to a "for sale" ad posted by Esther on a web site.
______ 7. Paula applies for a federal grant to assist in her education.
______ 8. Sean owns a painting company; he orders supplies from a paint manufacturer online.
______ 9. Sebastian orders flowers online for his wedding anniversary.
______ 10. Viola, the chief accountant at a publicly-traded corporation, files her company's annual report using EDGAR.

Question 43

Which of the following is least likely to be provided by an ASP?

A) manufacturing services
B) activity-based costing analysis
C) workers' compensation insurance administration
D) risk management

Question 44

Costs and benefits of e-business
The costs and benefits of e-business discussed in the text are listed below. Provide a specific example of each one in the space provided. For example, customer distrust may result from data security issues.

Question 45

The text discussed four common modules in most ERP systems. Suggest and describe an additional module Aqualand might incorporate in its ERP system.

Question 46

CTZ Corporation is an ASP. Its single product is focused on personal financial planning; its clients are all in southern California and Nevada. CTZ could be described as: (i) a regional ASP, (ii) an enterprise ASP, (iii) a specialist ASP.

A) I and II only
B) II and III only
C) I and III only
D) I, II and III

Question 47

Paul wants to determine the balance to report for inventory on his company's balance sheet. Which of the following statements is most true?

A) He can obtain all the data he needs from the supply chain management module.
B) He can obtain all the data he needs from the customer relationship management module.
C) He must access tables in at least three modules to determine the balance.
D) The ERP system cannot produce data for the general purpose financial statements.

Question 48

An ERP system contains a normalized table with the following fields: beginning balance, beginning balance date. The table would most likely be in which module of the system?

A) Financial management.
B) Supply chain management.
C) Human resource management.
D) Customer relationship management.

Question 49

Is Aqualand engaged in e-business? Justify your response.

Question 50

Causes of ERP implementation failure
Doug, Angela and Sunny were discussing their company's recent ERP implementation; an excerpt from their conversation appears below. In the space provided, identify five phrases from the conversation that exemplify one or more of the common causes of ERP implementation failure discussed in the text.
Doug: I'm really surprised our ERP system is finally up and running-I thought we'd never be able to stick to the schedule we laid out when we started!
Angela: I know what you mean, Doug. And, the fact that upper management never attended any of our planning meetings didn't help.
Sunny: Right but I think you'll both agree that laying out a flowchart for the process really influenced its results.
Angela: I feel badly about the employees we had to lay off because the system made their positions obsolete. We should have given them more warning.
Doug: True-but most of them were in the information systems department any way. They won't have any trouble finding new jobs with their background and experience. And, without those expensive employees, company profits should double within three years.
Sunny: In a way, it's probably good that the new system doesn't really interact with the human resource information system we have in place. At least we'll be sure people's personal data is safe and sound.
Angela: Very true, Sunny. And, since all our business processes have remained the same, people should adapt easily to the new system.

Question 51

The text identified ten common problems that often contribute to ERP implementation failure. Distinguish them as primarily related to: (a) problems with people, (b) problems with planning or (c) problems with software.

Question 52

ERP structure
Create the structure of three database tables you would expect to find in the customer relationship management module of an ERP system. At least one of the tables must be a junction table; indicate primary keys by underlining and foreign keys with brackets.

Question 53

Distinguish the five forms of e-business discussed in the text. Choose one or more forms that describe USAID; explain your response.

Question 54

An ERP system contains a table with the following field names: last name, first name, address. The table could be part of which module(s): (i) customer relationship management, (ii) human resource management, (iii) supply chain management.

A) i or ii only.
B) ii or iii only.
C) i or iii only.
D) i, ii or iii.

Question 55

Would you recommend Aqualand use an application service provider or purchase and install ERP software? Justify your response.

Question 56

A vertical market ASP:

A) delivers high-end business applications.
B) supports a specific industry.
C) maintains profits through transaction volume.
D) is less likely to experience service interruptions than other ASP types.

Question 57

An ERP system contains an inventory table in third normal form. The table is most likely a part of which ERP module?

A) Inventory module.
B) Financial management module.
C) Customer relationship management module.
D) Supply chain management module.

Question 58

What does the abbreviation "ASP" stand for when applied to accounting information systems?

A) accounting support program
B) accounting service provider
C) accounting support provider
D) application service provider

Question 59

List and discuss the steps associated with successful ERP implementations.

Question 60

WebTrust and SysTrust
Place an "X" in the appropriate column for each of the following statements about WebTrust and SysTrust.