PRC-3 · Chapter 5
Information Systems MCQs with Answers
74 multiple-choice questions on Information Systems for PRC-3 Business & Economic Insights. Try each one before revealing the answer and explanation.
Practise this chapter interactivelyQuestion 1
A supermarket's barcode scanner records thousands of individual item prices and timestamps every hour. A manager later reviews a report showing that fruit sales peak on Saturday mornings. How do these two elements relate?
- A) Both are raw data
- B) Both are processed information
- C) The barcode scans are raw data, and the report is processed information
- D) The barcode scans are information, and the report is raw data
Show answer & explanation
Answer: C) The barcode scans are raw data, and the report is processed information
Data represents raw, unorganized facts (the scans), while information is data that has been processed into a meaningful format (the sales report).
Question 2
The payroll department of a factory uses a software system to calculate the weekly wages of line workers based on their punched-in hours. What type of information system is this?
- A) Decision Support System (DSS)
- B) Executive Information System (EIS)
- C) Transaction Processing System (TPS)
- D) Expert System
Show answer & explanation
Answer: C) Transaction Processing System (TPS)
A Transaction Processing System (TPS) supports single users in routine, everyday business transactions like calculating payroll.
Question 3
A regional sales manager receives a weekly summary comparing the actual sales figures of 10 stores against their monthly targets. Which system is most likely generating this structured, regular report?
- A) Management Information System (MIS)
- B) Operational Hardware System
- C) Artificial Intelligence System
- D) Strategic Extranet System
Show answer & explanation
Answer: A) Management Information System (MIS)
An MIS is designed to report on existing operations by generating regular, structured reports for middle management.
Question 4
A shipping company uses specialized software that analyzes weather patterns, fuel costs, and port delays to help managers choose the most cost-effective routes for their vessels. What type of system is this?
- A) Transaction Processing System (TPS)
- B) Decision Support System (DSS)
- C) Internal Network System
- D) Record-keeping System
Show answer & explanation
Answer: B) Decision Support System (DSS)
A Decision Support System (DSS) provides analytical capabilities and models to assist managers in making complex or unstructured decisions.
Question 5
The CEO of a multinational corporation uses a highly visual dashboard system to monitor global market trends and long-term economic shifts to plan a 10-year expansion strategy. Which system is the CEO using?
- A) Transaction Processing System (TPS)
- B) Executive Information System (EIS)
- C) Data Entry System
- D) Basic Accounting System
Show answer & explanation
Answer: B) Executive Information System (EIS)
An Executive Information System (EIS) is used by senior executives to drill down into strategic, long-term information and visual data.
Question 6
An HR department uses a software application to safely store, search, and update employee records, ensuring data is not duplicated or lost. What is this software called?
- A) Database Management System (DBMS)
- B) Wide Area Network (WAN)
- C) Extranet protocol
- D) Data mining hardware
Show answer & explanation
Answer: A) Database Management System (DBMS)
A DBMS is the software interface that enables users to enter, store, organize, and retrieve data securely from a database.
Question 7
A large bank has a secure, private network that allows its employees to access internal policies, training modules, and company news. Outsiders cannot access this network. What is this called?
- A) The Internet
- B) An Extranet
- C) An Intranet
- D) A public cloud
Show answer & explanation
Answer: C) An Intranet
An intranet is a private, internal communications network used exclusively within an organization by its employees.
Question 8
An automobile manufacturer sets up a secure online portal where its authorized parts suppliers can log in to check current inventory levels and upcoming production schedules. What type of network is this?
- A) Intranet
- B) Extranet
- C) Local Area Network (LAN)
- D) Open Internet
Show answer & explanation
Answer: B) Extranet
An extranet is an extended intranet that securely shares part of a business's information with external partners like suppliers or vendors.
Question 9
A telecom company uses advanced algorithms to analyze terabytes of customer call data to identify subtle patterns and predict which customers are likely to switch to a competitor next month. What process is the company using?
- A) Data entry
- B) Word processing
- C) Data mining
- D) Transaction processing
Show answer & explanation
Answer: C) Data mining
Data mining involves analyzing large datasets to predict future trends and behaviors, allowing managers to make proactive decisions.
Question 10
A hospital implements multi-factor authentication and encryption to ensure that patient medical records cannot be accessed by hackers. Which key element of information systems does this represent?
- A) Database retrieval
- B) Data integration
- C) Hardware maintenance
- D) Security and privacy
Show answer & explanation
Answer: D) Security and privacy
Security and privacy are essential elements that ensure data is protected from unauthorized access, misuse, or loss.
Question 11
A supermarket scanner reads the barcode of every item sold. This massive stream of unorganized, individual facts is referred to as:
- A) Hardware
- B) Information
- C) Raw Data
- D) A Database
Show answer & explanation
Answer: C) Raw Data
Data consists of raw, unorganized facts and figures. It only becomes 'information' when it is processed and given meaningful context.
Question 12
In an IT system, the physical, tangible components such as servers, monitors, keyboards, and routers are collectively known as:
- A) Software
- B) Hardware
- C) Network protocols
- D) DBMS
Show answer & explanation
Answer: B) Hardware
Hardware refers to all the physical machinery and equipment that make up a computer system.
Question 13
An HR department uses a specific type of software that securely stores thousands of employee records, allowing managers to efficiently search, update, and retrieve files. What is this software called?
- A) Database Management System (DBMS)
- B) Word Processor
- C) Virtual Private Network (VPN)
- D) Firewall
Show answer & explanation
Answer: A) Database Management System (DBMS)
A DBMS is the software interface that allows users to create, read, update, and manage data systematically within a database.
Question 14
An organization wants to securely connect the computer systems of its branch office in Lahore with its head office in Karachi to share data. What technology achieves this?
- A) A stand-alone CPU
- B) A computer network (WAN)
- C) An operating system
- D) A barcode scanner
Show answer & explanation
Answer: B) A computer network (WAN)
A computer network (specifically a Wide Area Network or WAN in this geographic context) links multiple computer systems together to share data.
Question 15
A bank teller uses a computer to record cash deposits and withdrawals as customers approach the counter. This routine, day-to-day operational system is known as a:
- A) Decision Support System (DSS)
- B) Transaction Processing System (TPS)
- C) Executive Information System (EIS)
- D) Strategic Management System
Show answer & explanation
Answer: B) Transaction Processing System (TPS)
A TPS handles high volumes of routine, daily business transactions, forming the foundational operational data for an organization.
Question 16
A middle manager receives a structured weekly report summarizing the total sales figures compared to the previous month. This report is likely generated by a:
- A) Transaction Processing System (TPS)
- B) Management Information System (MIS)
- C) Real-time operating system
- D) Expert System (ES)
Show answer & explanation
Answer: B) Management Information System (MIS)
An MIS provides regular, structured reports on existing operations to help middle managers control the business and make structured decisions.
Question 17
A shipping company uses software that analyzes complex variables like fuel prices, weather, and port congestion to help managers choose the best shipping routes. This advanced analytical tool is a:
- A) Decision Support System (DSS)
- B) Transaction Processing System (TPS)
- C) Standard Accounting Ledger
- D) Hardware Network
Show answer & explanation
Answer: A) Decision Support System (DSS)
A DSS provides analytical models and tools to assist managers in making complex, semi-structured decisions with many changing variables.
Question 18
The CEO of an airline uses a dashboard that displays highly visual data regarding global economic trends to plan fleet expansion for the next decade. What system is the CEO using?
- A) Operational TPS
- B) Executive Information System (EIS)
- C) Data Entry System
- D) Payroll System
Show answer & explanation
Answer: B) Executive Information System (EIS)
An EIS is designed for top-level executives, providing high-level, visual, and strategic information to assist in long-term, unstructured decision-making.
Question 19
A hospital utilizes a computer program that asks a series of diagnostic questions and uses a vast database of medical knowledge to suggest potential illnesses. What type of system is this?
- A) Expert System (ES)
- B) Transaction Processing System (TPS)
- C) Intranet Extranet Protocol
- D) Executive Support System
Show answer & explanation
Answer: A) Expert System (ES)
An Expert System (ES) simulates human judgment and decision-making by applying a set of rules to a vast database of specialized knowledge.
Question 20
A large manufacturing firm installs a massive software suite (like SAP or Oracle) that integrates HR, Finance, Inventory, and Order Processing into one single, real-time database. This is known as:
- A) Enterprise Resource Planning (ERP)
- B) A Local Area Network (LAN)
- C) An Office Automation System
- D) A batch processing system
Show answer & explanation
Answer: A) Enterprise Resource Planning (ERP)
ERP is a cross-functional system that integrates all core business processes (finance, HR, supply chain) into a unified, real-time software suite.
Question 21
To prevent unauthorized access to sensitive financial records, a company implements firewalls, passwords, and encryption. Which key element of information systems does this represent?
- A) Data integration
- B) Batch processing
- C) Security and privacy
- D) Open networking
Show answer & explanation
Answer: C) Security and privacy
Security and privacy measures are essential components of an IS to protect data integrity and prevent unauthorized access or hacking.
Question 22
A supervisor on a factory floor needs to know exactly how many units were produced in the morning shift to assign tasks for the afternoon. What level of information does this represent?
- A) Strategic information
- B) Tactical information
- C) Operational information
- D) Executive forecasting
Show answer & explanation
Answer: C) Operational information
Operational information relates to day-to-day, routine activities and is used by frontline supervisors to manage immediate tasks.
Question 23
A business is analyzing a new IS that processes data in large groups at the end of every week rather than instantly. What data processing method is this?
- A) Real-time processing
- B) Batch processing
- C) Online processing
- D) Executive processing
Show answer & explanation
Answer: B) Batch processing
Batch processing involves collecting transactions over a period of time and processing them together as a single group, rather than instantly.
Question 24
A biometric scanner logs thousands of employee thumbprints and timestamps every morning. Until these logs are organized into a 'monthly attendance report', what are they considered?
- A) Processed information
- B) Raw data
- C) Strategic intelligence
- D) A decision support model
Show answer & explanation
Answer: B) Raw data
Raw, unorganized facts and figures (like raw timestamps) are considered data. They become information only after being processed into a meaningful format.
Question 25
A fast-food restaurant uses a computerized cash register that immediately records every burger sold, updates inventory, and calculates change for the customer. What type of system is this?
- A) Executive Information System (EIS)
- B) Transaction Processing System (TPS)
- C) Expert System (ES)
- D) Strategic Planning System
Show answer & explanation
Answer: B) Transaction Processing System (TPS)
A TPS handles high volumes of routine, day-to-day operational transactions immediately as they occur.
Question 26
Every Friday afternoon, a factory manager receives an automated, formatted report comparing this week's production output against the planned targets. Which system generated this routine report?
- A) Management Information System (MIS)
- B) Transaction Processing System (TPS)
- C) Artificial Intelligence System
- D) Extranet Portal
Show answer & explanation
Answer: A) Management Information System (MIS)
An MIS is designed to provide middle managers with regular, structured reports on existing operations to help them monitor and control the business.
Question 27
An airline pricing manager uses a sophisticated software tool that models competitor prices, fuel costs, and historical demand to help her decide whether to drop ticket prices for next month. What is this tool called?
- A) Transaction Processing System (TPS)
- B) Data Entry Software
- C) Decision Support System (DSS)
- D) Word Processor
Show answer & explanation
Answer: C) Decision Support System (DSS)
A DSS provides analytical models and 'what-if' scenarios to assist managers in making complex, unstructured decisions.
Question 28
The President of a multinational bank uses a tablet dashboard showing colorful graphs of global currency trends and long-term economic forecasts to plan a 10-year strategy. What type of system is this?
- A) Executive Information System (EIS)
- B) Standard Accounting Ledger
- C) Basic MIS
- D) Routine TPS
Show answer & explanation
Answer: A) Executive Information System (EIS)
An EIS is tailored for senior executives, presenting high-level, visual, and strategic data to aid in long-term organizational planning.
Question 29
A massive corporation installs a single, unified software platform that links its HR, Finance, Manufacturing, and Sales departments so they all share the exact same real-time database. What is this software suite called?
- A) Office Automation System
- B) Enterprise Resource Planning (ERP)
- C) Local Area Network (LAN)
- D) Decision Support System
Show answer & explanation
Answer: B) Enterprise Resource Planning (ERP)
ERP systems integrate all core business processes and departments into a single, comprehensive system and unified database.
Question 30
Banks process millions of physical paper cheques daily. To do this quickly, they use a technology that reads specially formatted characters printed in magnetic ink at the bottom of the cheque. What is this called?
- A) Optical Character Recognition (OCR)
- B) Barcode scanning
- C) Magnetic Ink Character Recognition (MICR)
- D) Quick Response (QR) code
Show answer & explanation
Answer: C) Magnetic Ink Character Recognition (MICR)
MICR is an input technology used primarily by the banking industry to securely and quickly read the routing numbers at the bottom of cheques.
Question 31
A car manufacturer sets up a secure, private web portal. They give login credentials to their top five raw material suppliers so the suppliers can check inventory levels. What type of network is this?
- A) The public Internet
- B) An Intranet
- C) An Extranet
- D) A Local Area Network (LAN)
Show answer & explanation
Answer: C) An Extranet
An extranet is an extension of an organization's internal network that allows secure, controlled access to trusted external parties, like suppliers or partners.
Question 32
Employees at a hospital log into a private internal network to read the latest staff announcements and download HR forms. The general public cannot access this network. What is this called?
- A) An Intranet
- B) An Extranet
- C) The World Wide Web
- D) An Expert System
Show answer & explanation
Answer: A) An Intranet
An intranet is a private network contained within an enterprise, used solely to securely share company information and computing resources among employees.
Question 33
A payroll system collects all employee timecards throughout the month, and then processes them all at once on the 30th of the month to issue paychecks. What data processing method is this?
- A) Real-time processing
- B) Batch processing
- C) Online processing
- D) Continuous processing
Show answer & explanation
Answer: B) Batch processing
Batch processing involves accumulating transactions over time and then processing them together as a single group, which is highly efficient for tasks like payroll.
Question 34
A university uses a specialized software application to securely store, organize, query, and retrieve the records of 50,000 students without data duplication. What is this software called?
- A) Word Processor
- B) Operating System
- C) Database Management System (DBMS)
- D) Wide Area Network
Show answer & explanation
Answer: C) Database Management System (DBMS)
A DBMS is software designed to store, retrieve, define, and manage data in a database efficiently and securely.
Question 35
The Chief Executive Officer (CEO) of a global logistics company requires strategic, visual information to decide whether to acquire a major rival firm in a foreign market. Which type of information system is best suited to support this unstructured decision?
- A) Transaction Processing System (TPS)
- B) Point of Sale System (POS)
- C) Executive Information System (EIS)
- D) Basic Batch Processing System
Show answer & explanation
Answer: C) Executive Information System (EIS)
An Executive Information System (EIS) is specifically designed to provide top executives with strategic, high-level, and visual information to aid in complex, unstructured decision-making.
Question 36
At a modern retail checkout, a customer scans their items and then completes the purchase by tapping their mobile phone on the terminal. The system processing this is an advanced form of:
- A) Decision Support System (DSS)
- B) Electronic Point of Sale (EPOS)
- C) Executive Information System (EIS)
- D) Batch processing ledger
Show answer & explanation
Answer: B) Electronic Point of Sale (EPOS)
EPOS systems handle retail checkout transactions. Modern EPOS terminals have advanced to accept payments via credit cards and mobile phones.
Question 37
An employee uses Bluetooth to wirelessly connect their smartphone to their desktop computer in their office. What specific type of computer network does this short-range connection create?
- A) Local Area Network (LAN)
- B) Wide Area Network (WAN)
- C) Personal Area Network (PAN)
- D) Metropolitan Area Network (MAN)
Show answer & explanation
Answer: C) Personal Area Network (PAN)
Bluetooth is a prime example of a Personal Area Network (PAN), which connects devices within the immediate vicinity of a single person.
Question 38
A massive multinational bank uses a complex computer network to seamlessly connect its branch servers in London, Tokyo, and New York. What type of network is this?
- A) Local Area Network (LAN)
- B) Wide Area Network (WAN)
- C) Personal Area Network (PAN)
- D) Intranet Router
Show answer & explanation
Answer: B) Wide Area Network (WAN)
A Wide Area Network (WAN) spans a large physical distance, connecting multiple sites across cities, countries, or even continents.
Question 39
An automobile manufacturer sets up a secure, restricted website that allows its top 10 external steel suppliers to log in and view next month's production schedule. What is this network called?
- A) Intranet
- B) Extranet
- C) The public Internet
- D) Personal Area Network (PAN)
Show answer & explanation
Answer: B) Extranet
An extranet provides secure, controlled access to a company's internal information systems for authorized external partners like suppliers.
Question 40
A bank customer uses an ATM to withdraw Rs. 5,000. They immediately walk to a different ATM next door and see their balance has already been reduced by Rs. 5,000. What type of processing allows this?
- A) Batch processing
- B) Real-time (Online) processing
- C) Delayed processing
- D) Expert system processing
Show answer & explanation
Answer: B) Real-time (Online) processing
Real-time processing updates the central database instantly the moment a transaction occurs, ensuring data is always completely up-to-date.
Question 41
A factory's time-clock system collects data on when employees punch in and out all month. On the 30th, the system processes all this stored data at once to generate paychecks. What is this method called?
- A) Batch processing
- B) Real-time processing
- C) Online processing
- D) Immediate transaction processing
Show answer & explanation
Answer: A) Batch processing
Batch processing involves collecting a group of similar transactions over a period and processing them all together as a single batch, common in payroll.
Question 42
A marketing manager uses a software tool that simulates 'what-if' scenarios to determine how a 10% price increase might affect total market share. What type of information system is this?
- A) Transaction Processing System (TPS)
- B) Executive Information System (EIS)
- C) Decision Support System (DSS)
- D) Basic Accounting Ledger
Show answer & explanation
Answer: C) Decision Support System (DSS)
A DSS provides managers with interactive analytical tools and models to evaluate complex variables and 'what-if' scenarios to aid decision-making.
Question 43
The CEO of an airline opens a software dashboard on his tablet that displays visual graphs of global fuel prices and competitor market shares to help plan a 5-year strategy. He is using an:
- A) Executive Information System (EIS)
- B) Transaction Processing System (TPS)
- C) Office Automation System (OAS)
- D) Employee Database
Show answer & explanation
Answer: A) Executive Information System (EIS)
An EIS is designed for top-level executives, providing highly visual, strategic, and summarized information to assist in long-term planning.
Question 44
The logistics manager needs a daily report showing exactly how many transport trucks arrived and left the warehouse yesterday, and the basic costs incurred. The system providing this routine operational data is a:
- A) Decision Support System (DSS)
- B) Executive Information System (EIS)
- C) Transaction Processing System (TPS)
- D) Artificial Intelligence Node
Show answer & explanation
Answer: C) Transaction Processing System (TPS)
A TPS processes routine, day-to-day business transactions and provides basic operational data such as daily shipments or sales.
Question 45
An HR manager uses specialized software to search a massive digital repository to find employees with specific engineering skills and past assignment successes. The system organizing this data is a:
- A) Database Management System (DBMS) / Data analytics software
- B) Hardware Router
- C) Local Area Network (LAN)
- D) Real-time physical ledger
Show answer & explanation
Answer: A) Database Management System (DBMS) / Data analytics software
A DBMS or data analytics software allows users to efficiently store, organize, query, and analyze large datasets to find specific information.
Question 46
A massive data center uses automated robotic arms to retrieve offline magnetic tape cartridges from shelves when archival data is needed. What level of storage device does this represent?
- A) Primary memory (RAM)
- B) Secondary storage (Hard Drive)
- C) Tertiary storage
- D) Cloud computing
Show answer & explanation
Answer: C) Tertiary storage
Tertiary storage involves a robotic mechanism that manages large-scale offline storage media, physically loading and unloading tapes as needed.
Question 47
A business utilizes an information system designed specifically to process thousands of routine daily data transactions in real-time as they occur. What type of system is this?
- A) Decision Support System (DSS)
- B) Transaction Processing System (TPS)
- C) Executive Information System (EIS)
- D) Management Information System (MIS)
Show answer & explanation
Answer: B) Transaction Processing System (TPS)
A Transaction Processing System (TPS) is responsible for processing multiple day-to-day routine business data transactions as they occur, often functioning as a real-time processing system.
Question 48
A large supermarket uses an information system that exclusively handles thousands of high-volume, routine daily sales entries as customers check out. What is this foundational system known as?
- A) Decision Support System (DSS)
- B) Transaction Processing System (TPS)
- C) Executive Information System (EIS)
- D) Expert System (ES)
Show answer & explanation
Answer: B) Transaction Processing System (TPS)
A TPS is the operational-level system responsible for reliably collecting, storing, and processing routine, day-to-day business transactions like sales and receipts.
Question 49
A middle manager needs a formatted, weekly report summarizing total inventory movements compared to the monthly budget. Which system is specifically designed to extract this structured data from the TPS?
- A) Management Information System (MIS)
- B) Executive Information System (EIS)
- C) Barcode scanner
- D) Wide Area Network (WAN)
Show answer & explanation
Answer: A) Management Information System (MIS)
An MIS provides middle management with regular, structured reports based on data from the TPS to help them monitor operations and make tactical decisions.
Question 50
An insurance actuary uses a highly interactive software tool that models complex variables to simulate 'what-if' scenarios, helping determine the pricing for a new life insurance policy. What system is this?
- A) Transaction Processing System (TPS)
- B) Basic MIS
- C) Decision Support System (DSS)
- D) Operating System
Show answer & explanation
Answer: C) Decision Support System (DSS)
A DSS provides analytical models and interactive 'what-if' capabilities to assist professionals and managers in making complex, semi-structured decisions.
Question 51
The CEO of a multinational bank uses a dashboard that displays summarized, colorful graphs of global economic trends, competitor data, and long-term forecasts. What type of system is tailored for this user?
- A) Executive Information System (EIS)
- B) Routine TPS
- C) Data Entry Portal
- D) Operational MIS
Show answer & explanation
Answer: A) Executive Information System (EIS)
An EIS is designed for top executives, combining internal and external data into visual dashboards to support highly unstructured, strategic decision-making.
Question 52
A bank customer withdraws Rs. 10,000 from an ATM. The bank's central database is updated immediately, preventing the customer from overdrawing at another ATM a minute later. What data processing method is this?
- A) Batch processing
- B) Real-time (Online) processing
- C) Delayed transaction processing
- D) Tertiary storage processing
Show answer & explanation
Answer: B) Real-time (Online) processing
Real-time processing updates the central database instantly as the transaction occurs, which is absolutely critical for systems like banking and airline reservations.
Question 53
A manufacturing firm replaces its separate HR, Finance, and Inventory software with a single, massive software suite that shares one unified real-time database across the entire company. This suite is known as:
- A) Enterprise Resource Planning (ERP)
- B) Office Automation System (OAS)
- C) Local Area Network (LAN)
- D) Magnetic Ink Character Recognition (MICR)
Show answer & explanation
Answer: A) Enterprise Resource Planning (ERP)
ERP is a cross-functional system that integrates all core business processes (finance, HR, manufacturing) into a single, unified software platform and database.
Question 54
An automobile company creates a secure web portal that allows its trusted external parts suppliers to log in and view upcoming production schedules to plan deliveries. What type of network is this?
- A) Intranet
- B) Extranet
- C) The public Internet
- D) Personal Area Network (PAN)
Show answer & explanation
Answer: B) Extranet
An extranet is an extension of a company's internal network that allows secure, controlled access to authorized external partners, such as suppliers or major clients.
Question 55
A university sets up a private internal network where only enrolled students and staff can log in to view schedules, download forms, and read announcements. Outsiders cannot access it. What is this network?
- A) Intranet
- B) Extranet
- C) Wide Area Network (WAN)
- D) Expert System
Show answer & explanation
Answer: A) Intranet
An intranet is a private, secure network contained within an organization, used strictly for sharing information and resources among internal employees or members.
Question 56
A manager sits at a cafe and uses Bluetooth to transfer a file from her smartphone to her laptop. What specific classification of network does this short-range connection represent?
- A) Local Area Network (LAN)
- B) Wide Area Network (WAN)
- C) Personal Area Network (PAN)
- D) Extranet Portal
Show answer & explanation
Answer: C) Personal Area Network (PAN)
A Personal Area Network (PAN) covers a very small physical area (usually within a few meters), connecting personal devices like phones and laptops via Bluetooth.
Question 57
At a modern retail store, the cashier scans a barcode, the system instantly calculates the total, accepts a credit card payment, and deducts the item from inventory. This checkout hardware/software combo is called:
- A) Decision Support System (DSS)
- B) Electronic Point of Sale (EPOS)
- C) Executive Information System (EIS)
- D) Magnetic Ink Reader (MICR)
Show answer & explanation
Answer: B) Electronic Point of Sale (EPOS)
EPOS systems are advanced retail checkout terminals that handle barcode scanning, electronic payments, and real-time inventory updates.
Question 58
In any computer system, the physical, touchable components such as the monitor, server racks, keyboard, and router cables are collectively referred to as:
- A) Software
- B) Hardware
- C) Firmware
- D) Raw Data
Show answer & explanation
Answer: B) Hardware
Hardware encompasses all the physical, tangible machinery and electronic equipment that make up a computer system.
Question 59
A medical diagnostics program asks a doctor a series of symptom questions and then applies a vast database of programmed medical rules to suggest a diagnosis, acting like a human specialist. What is this system?
- A) Expert System (ES)
- B) Routine TPS
- C) Hardware network
- D) Office Automation System
Show answer & explanation
Answer: A) Expert System (ES)
An Expert System is a branch of AI that uses a knowledge base and inference rules to simulate the judgment and decision-making behavior of a human expert.
Question 60
What does business data get processed into?
- A) Ideas
- B) Meaningful and useful information
- C) Data storage units
- D) Basic facts
Show answer & explanation
Answer: B) Meaningful and useful information
Data represents raw, unorganized facts. When data is processed, organized, and structured in a given context, it transforms into meaningful and useful information.
Question 61
What does batch processing involve?
- A) Processing transactions one by one in real-time
- B) Collecting a group of similar transactions and processing them together
- C) Storing transactions without processing them
- D) Automatically rejecting transactions based on predefined rules
Show answer & explanation
Answer: B) Collecting a group of similar transactions and processing them together
In a batch processing system, transactions are accumulated over time and then processed together as a single group or 'batch', rather than instantly as they occur.
Question 62
Which of the following is a function of a DBMS?
- A) It only stores data but does not organize it
- B) It acts as an interface between the user and the database, managing data and schema
- C) It processes large amounts of data offline
- D) It eliminates the need for any data retrieval
Show answer & explanation
Answer: B) It acts as an interface between the user and the database, managing data and schema
A Database Management System (DBMS) serves as the core interface allowing users to systematically organize, store, retrieve, and manage data and schemas.
Question 63
Which of the following is a feature of high-end ERP systems?
- A) Real-time processing and advanced analytics
- B) Storing customer feedback exclusively
- C) Only managing email communications
- D) Replacing all hardware components
Show answer & explanation
Answer: A) Real-time processing and advanced analytics
Enterprise Resource Planning (ERP) systems integrate an organization's core processes, frequently featuring real-time processing and offering advanced analytics for decision making.
Question 64
A computer network that spans a limited physical area, usually ranging from a small office to a building is known as a:
- A) LAN
- B) WAN
- C) MAN
- D) PAN
Show answer & explanation
Answer: A) LAN
A Local Area Network (LAN) connects computers and devices over a short distance, such as within a single building or an office.
Question 65
A computer network that spans a large physical area, connecting several sites of an organisation across cities, countries, and continents is known as a:
- A) LAN
- B) WAN
- C) MAN
- D) PAN
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Answer: B) WAN
A Wide Area Network (WAN) covers a large geographical area, facilitating communication between dispersed branches globally.
Question 66
Bluetooth technology is a prime example of which type of network?
- A) Wide area network
- B) Virtual private network
- C) Local area network
- D) Personal area network
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Answer: D) Personal area network
A Personal Area Network (PAN) provides data transmission among devices such as computers, smartphones, tablets and personal digital assistants (e.g., via Bluetooth).
Question 67
What is a server in a computer network?
- A) Someone who manages the network
- B) The name for a large number of computer cables
- C) A powerful computer that provides a service, such as centralized file storage
- D) The primary router configuration
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Answer: C) A powerful computer that provides a service, such as centralized file storage
In networking, a server is a high-performance computer or system that provides resources, data, services, or programs to other computers, known as clients.
Question 68
A/An ________ is a collection of procedures for converting data into knowledge and facts.
- A) Information system
- B) Data system
- C) Storage system
- D) Processor
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Answer: A) Information system
An Information System is a combination of hardware, software, infrastructure, and trained personnel organized to facilitate planning, control, coordination, and decision making by converting data into knowledge.
Question 69
Strategic information and long-term decision-making are primarily important to which level of decision-makers?
- A) Executive managers
- B) Supervisors
- C) Supporting staff
- D) Clerical staff
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Answer: A) Executive managers
Executive (top-level) management uses strategic information systems, like Executive Support Systems (ESS), to make long-term, non-routine strategic decisions.
Question 70
Ajay woke up, went to the ATM to take money, then went to a grocery store to buy products, and registered online for his computer class. What kind of information systems did Ajay have multiple contacts with?
- A) EIS (Executive Information System)
- B) MIS (Management Information System)
- C) Transaction Processing System (TPS)
- D) Decision Support System (DSS)
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Answer: C) Transaction Processing System (TPS)
ATMs, point-of-sale retail checkouts, and online class registrations are all systems designed to process and record routine daily business transactions, which defines a TPS.
Question 71
A _______________ helps users to process data transactions within a database system that tracks transaction programs.
- A) Executive Support System
- B) Decision Support System
- C) Transaction Processing System
- D) Neural Network
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Answer: C) Transaction Processing System
A Transaction Processing System (TPS) is specifically designed to manage and monitor basic data transactions smoothly and consistently.
Question 72
A Transaction Processing System is frequently utilized as a real-time processing system where data is updated instantly.
- A) True
- B) False
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Answer: A) True
Many modern Transaction Processing Systems operate in real-time to immediately reflect updates, crucial for functions like ATM withdrawals and flight bookings.
Question 73
Which of the following processes multiple transactions at the exact same time as a grouped block?
- A) Batch Processing
- B) Real-time Processing
- C) Distributed System
- D) Immediate update processing
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Answer: A) Batch Processing
Batch processing involves accumulating transaction data over time and processing the entire batch of identical transactions simultaneously at a scheduled time.
Question 74
In which processing method are the results of each individual transaction NOT immediately available?
- A) Batch processing
- B) Real-time processing
- C) Online transaction processing
- D) Direct access processing
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Answer: A) Batch processing
Because batch processing delays the execution of tasks until a sufficient quantity is gathered, the outcome of any single transaction isn't known until the entire batch is processed.