TEST BANK FOR MANAGEMENT INFORMATION
SYSTEMS MANAGING THE DIGITAL FIRM 17 EDITION
KENNETH. LAUDON — 195 Questions and Answers Already
Graded A+ Premium Exam Tested And Verified
Subject Area Management Information Systems
Description This examination assesses deep conceptual understanding and application of core
MIS topics from Laudon's Managing the Digital Firm, 17th Edition. It covers
strategic information systems, digital business transformation, data management,
cybersecurity, ethical and social implications, and emerging technologies.
Questions require synthesis, critical analysis, and application to complex
organizational scenarios.
Expected Grade A+
Total Questions 50
Duration 3 hours
Learning Outcomes 1. Analyze how information systems transform business processes and
organizational strategy.
2. Evaluate the ethical, social, and security implications of digital technologies.
3. Apply data management and analytics concepts to inform decision-making.
4. Assess the role of emerging technologies (AI, IoT, cloud) in creating
competitive advantage.
Accreditation Designed to meet rigorous standards of AACSB-accredited business programs and
top-tier US universities.
Page 1
,1. A multinational corporation implements a cloud-based ERP system to integrate its
global supply chain. However, after deployment, the company faces significant
resistance from regional subsidiaries that previously used custom-built legacy
systems. Which of the following best explains the root cause of this resistance?
A. The ERP system lacks sufficient data encryption for cross-border transactions.
B. The subsidiaries perceive a loss of local autonomy and control over business processes.
C. The ERP system's user interface is not available in local languages.
D. The implementation was not preceded by a formal cost-benefit analysis.
Answer: B. The subsidiaries perceive a loss of local autonomy and control over
business processes.
Resistance often stems from organizational culture and loss of local control, not
technical deficiencies. While language and encryption are valid concerns, the core issue
is autonomy. Cost-benefit analysis is important but not directly causal.
2. A hospital uses a machine learning model to predict patient readmission risk
based on electronic health records. The model achieves 95% accuracy on training
data but only 70% on new patient data. Which of the following is the most likely
cause of this discrepancy?
A. The model is overfitted to the training data and fails to generalize.
B. The training data contained a high proportion of outliers.
C. The model uses too few features for prediction.
D. The new patient data is not normalized to the same scale.
Answer: A. The model is overfitted to the training data and fails to generalize.
Overfitting occurs when a model learns noise and specific patterns in training data,
reducing performance on unseen data. High training accuracy with a significant drop
in validation accuracy is a classic symptom. Outliers, feature count, and scaling are
secondary considerations.
Page 2
,3. Which of the following best describes the primary ethical dilemma posed by the
use of predictive analytics in hiring?
A. Predictive models may inadvertently perpetuate historical biases embedded in training
data.
B. Applicants are not informed that their data is being analyzed.
C. The cost of implementing predictive analytics is prohibitive for small businesses.
D. Predictive analytics reduces the role of human judgment in hiring decisions.
Answer: A. Predictive models may inadvertently perpetuate historical biases
embedded in training data.
The core ethical issue is algorithmic bias: if historical hiring data reflects
discrimination, the model will learn and amplify those biases. While lack of
transparency (B) and cost (C) are concerns, they are not the primary dilemma. Human
judgment reduction (D) is a design choice, not necessarily unethical.
4. A retail company uses a real-time recommendation system that updates product
suggestions based on customer browsing behavior. This system is an example of
which type of information system?
A. Decision support system (DSS)
B. Executive support system (ESS)
C. Transaction processing system (TPS)
D. Customer relationship management system (CRM)
Answer: D. Customer relationship management system (CRM)
A recommendation system that personalizes customer interactions is a component of
CRM, which manages customer relationships and interactions. DSS supports
non-routine decisions, ESS supports top management, and TPS handles routine
transactions. The real-time, personalized nature aligns with CRM.
Page 3
, 5. In the context of database normalization, which of the following is a violation of
the third normal form (3NF)?
A. A table where a non-key attribute is functionally dependent on another non-key attribute.
B. A table where a candidate key determines multiple non-key attributes.
C. A table where a non-key attribute is functionally dependent on part of a composite key.
D. A table where all attributes are atomic and there are no repeating groups.
Answer: A. A table where a non-key attribute is functionally dependent on another
non-key attribute.
3NF requires that every non-key attribute be directly dependent on the primary key,
not on other non-key attributes (transitive dependency). Option A describes transitive
dependency. Option B is acceptable in 2NF, C violates 2NF, D describes 1NF.
6. A company's network is infected with ransomware that encrypts files and
demands payment. Which of the following security controls would have been most
effective in preventing this attack?
A. Implementing a firewall to block inbound traffic from suspicious IP addresses.
B. Conducting regular backups stored offline or in a separate, immutable location.
C. Installing antivirus software that detects known ransomware signatures.
D. Enforcing strong password policies and multi-factor authentication.
Answer: B. Conducting regular backups stored offline or in a separate, immutable
location.
Ransomware often evades detection; backups ensure data recovery without paying.
Firewalls and antivirus can help but are not foolproof. Strong passwords prevent
unauthorized access but not malware execution. Offline backups are the most robust
defense against data loss.
Page 4
SYSTEMS MANAGING THE DIGITAL FIRM 17 EDITION
KENNETH. LAUDON — 195 Questions and Answers Already
Graded A+ Premium Exam Tested And Verified
Subject Area Management Information Systems
Description This examination assesses deep conceptual understanding and application of core
MIS topics from Laudon's Managing the Digital Firm, 17th Edition. It covers
strategic information systems, digital business transformation, data management,
cybersecurity, ethical and social implications, and emerging technologies.
Questions require synthesis, critical analysis, and application to complex
organizational scenarios.
Expected Grade A+
Total Questions 50
Duration 3 hours
Learning Outcomes 1. Analyze how information systems transform business processes and
organizational strategy.
2. Evaluate the ethical, social, and security implications of digital technologies.
3. Apply data management and analytics concepts to inform decision-making.
4. Assess the role of emerging technologies (AI, IoT, cloud) in creating
competitive advantage.
Accreditation Designed to meet rigorous standards of AACSB-accredited business programs and
top-tier US universities.
Page 1
,1. A multinational corporation implements a cloud-based ERP system to integrate its
global supply chain. However, after deployment, the company faces significant
resistance from regional subsidiaries that previously used custom-built legacy
systems. Which of the following best explains the root cause of this resistance?
A. The ERP system lacks sufficient data encryption for cross-border transactions.
B. The subsidiaries perceive a loss of local autonomy and control over business processes.
C. The ERP system's user interface is not available in local languages.
D. The implementation was not preceded by a formal cost-benefit analysis.
Answer: B. The subsidiaries perceive a loss of local autonomy and control over
business processes.
Resistance often stems from organizational culture and loss of local control, not
technical deficiencies. While language and encryption are valid concerns, the core issue
is autonomy. Cost-benefit analysis is important but not directly causal.
2. A hospital uses a machine learning model to predict patient readmission risk
based on electronic health records. The model achieves 95% accuracy on training
data but only 70% on new patient data. Which of the following is the most likely
cause of this discrepancy?
A. The model is overfitted to the training data and fails to generalize.
B. The training data contained a high proportion of outliers.
C. The model uses too few features for prediction.
D. The new patient data is not normalized to the same scale.
Answer: A. The model is overfitted to the training data and fails to generalize.
Overfitting occurs when a model learns noise and specific patterns in training data,
reducing performance on unseen data. High training accuracy with a significant drop
in validation accuracy is a classic symptom. Outliers, feature count, and scaling are
secondary considerations.
Page 2
,3. Which of the following best describes the primary ethical dilemma posed by the
use of predictive analytics in hiring?
A. Predictive models may inadvertently perpetuate historical biases embedded in training
data.
B. Applicants are not informed that their data is being analyzed.
C. The cost of implementing predictive analytics is prohibitive for small businesses.
D. Predictive analytics reduces the role of human judgment in hiring decisions.
Answer: A. Predictive models may inadvertently perpetuate historical biases
embedded in training data.
The core ethical issue is algorithmic bias: if historical hiring data reflects
discrimination, the model will learn and amplify those biases. While lack of
transparency (B) and cost (C) are concerns, they are not the primary dilemma. Human
judgment reduction (D) is a design choice, not necessarily unethical.
4. A retail company uses a real-time recommendation system that updates product
suggestions based on customer browsing behavior. This system is an example of
which type of information system?
A. Decision support system (DSS)
B. Executive support system (ESS)
C. Transaction processing system (TPS)
D. Customer relationship management system (CRM)
Answer: D. Customer relationship management system (CRM)
A recommendation system that personalizes customer interactions is a component of
CRM, which manages customer relationships and interactions. DSS supports
non-routine decisions, ESS supports top management, and TPS handles routine
transactions. The real-time, personalized nature aligns with CRM.
Page 3
, 5. In the context of database normalization, which of the following is a violation of
the third normal form (3NF)?
A. A table where a non-key attribute is functionally dependent on another non-key attribute.
B. A table where a candidate key determines multiple non-key attributes.
C. A table where a non-key attribute is functionally dependent on part of a composite key.
D. A table where all attributes are atomic and there are no repeating groups.
Answer: A. A table where a non-key attribute is functionally dependent on another
non-key attribute.
3NF requires that every non-key attribute be directly dependent on the primary key,
not on other non-key attributes (transitive dependency). Option A describes transitive
dependency. Option B is acceptable in 2NF, C violates 2NF, D describes 1NF.
6. A company's network is infected with ransomware that encrypts files and
demands payment. Which of the following security controls would have been most
effective in preventing this attack?
A. Implementing a firewall to block inbound traffic from suspicious IP addresses.
B. Conducting regular backups stored offline or in a separate, immutable location.
C. Installing antivirus software that detects known ransomware signatures.
D. Enforcing strong password policies and multi-factor authentication.
Answer: B. Conducting regular backups stored offline or in a separate, immutable
location.
Ransomware often evades detection; backups ensure data recovery without paying.
Firewalls and antivirus can help but are not foolproof. Strong passwords prevent
unauthorized access but not malware execution. Offline backups are the most robust
defense against data loss.
Page 4
