BADM 7050 FINAL EXAM QUESTIONS &
ANSWERS (RATED A+)
Which of the following is an accurate statement about outsourcing?
a. firms that view IT strategically will always outsource their IT
b. firms that view IT as a turnaround will always outsource their IT
c. firms that view IT as a factory will always outsource their IT, all else being equal
d. firms that view IT as a support function will always outsource their IT - ANSWERfirms
that view IT as a support function will always outsource their IT
An innovation that improves a product or service for an existing customer is a...
a. sustaining innovation
b. disruptive innovation
c. continuous change innovation
d. punctuated equilibrium innovation
e. experimental innovation - ANSWERsustaining innovation
If someone wants a system cheaply, quickly, and with a large scope, we can conclude:
Valuing an IT investment is difficult for of many reasons. One reason is:
a. Many IT investments are necessities and payback is hard to calculate.
b. Increased customer satisfaction is not valued enough to justify costs.
c. IT investments often add no real business value.
d. IT managers do not see the need to value an investment whose payback period is
relatively short.
e. IT is seen as "a necessary evil." - ANSWERMany IT investments are necessities and
payback is hard to calculate.
The decisions that determine how IT assets are structured fall into which one of the five
major IT decision categories?
a. IT principles
b. IT architecture
c. IT infrastructure
d. Business application needs
e. IT investment and prioritization - ANSWERIT architecture
That desire represents the three sides of the project triangle
, That is normally not possible: you can usually only achieve two of those three objectives
at a time
Management might be providing an impossible goal
All of the above
None of the above - ANSWERAll of the above
The project triangle includes 3 sides: time, scope and:
Cost
Product
Event
Quality
Requirements - ANSWERCost
Which of the following is NOT a strategy for successful IT experimentation?
a. motivate
b. support
c. direct
d. manage
e. creation - ANSWERmotivate
support
direct
Scorecards provide a summary of information gathered over a period of time. Another
common IT monitoring tool is the:
a. baseline
b. metrics
c. portfolio
d. dashboard
e. Monitor - ANSWERdashboard
Which financial calculation provides a percentage rate that measure the relationship
between the amount the business gets back from an investment and the amount
invested?
a. IRR
b. ROI
c. payback
d. NPV
e. EVA - ANSWERROI
All of the following are methods used to value an IT investment EXCEPT:
a. payback analysis
b. ROI
c. NPV
ANSWERS (RATED A+)
Which of the following is an accurate statement about outsourcing?
a. firms that view IT strategically will always outsource their IT
b. firms that view IT as a turnaround will always outsource their IT
c. firms that view IT as a factory will always outsource their IT, all else being equal
d. firms that view IT as a support function will always outsource their IT - ANSWERfirms
that view IT as a support function will always outsource their IT
An innovation that improves a product or service for an existing customer is a...
a. sustaining innovation
b. disruptive innovation
c. continuous change innovation
d. punctuated equilibrium innovation
e. experimental innovation - ANSWERsustaining innovation
If someone wants a system cheaply, quickly, and with a large scope, we can conclude:
Valuing an IT investment is difficult for of many reasons. One reason is:
a. Many IT investments are necessities and payback is hard to calculate.
b. Increased customer satisfaction is not valued enough to justify costs.
c. IT investments often add no real business value.
d. IT managers do not see the need to value an investment whose payback period is
relatively short.
e. IT is seen as "a necessary evil." - ANSWERMany IT investments are necessities and
payback is hard to calculate.
The decisions that determine how IT assets are structured fall into which one of the five
major IT decision categories?
a. IT principles
b. IT architecture
c. IT infrastructure
d. Business application needs
e. IT investment and prioritization - ANSWERIT architecture
That desire represents the three sides of the project triangle
, That is normally not possible: you can usually only achieve two of those three objectives
at a time
Management might be providing an impossible goal
All of the above
None of the above - ANSWERAll of the above
The project triangle includes 3 sides: time, scope and:
Cost
Product
Event
Quality
Requirements - ANSWERCost
Which of the following is NOT a strategy for successful IT experimentation?
a. motivate
b. support
c. direct
d. manage
e. creation - ANSWERmotivate
support
direct
Scorecards provide a summary of information gathered over a period of time. Another
common IT monitoring tool is the:
a. baseline
b. metrics
c. portfolio
d. dashboard
e. Monitor - ANSWERdashboard
Which financial calculation provides a percentage rate that measure the relationship
between the amount the business gets back from an investment and the amount
invested?
a. IRR
b. ROI
c. payback
d. NPV
e. EVA - ANSWERROI
All of the following are methods used to value an IT investment EXCEPT:
a. payback analysis
b. ROI
c. NPV
