Multiple Choice Questions for Business Information course

1. Which term refers to business processes that are not executed by a single group or function?
a. Silo Effect c. Functional Structure
b. Cross-Functional d. Enterprise Systems
2. Which term refers to a system in which workers complete their tasks in separate departments
without regard to the consequences for the other components of the process?
a. ERP Effect c. Functional Structure
b. Silo Effect d. Cross-Functional
3. . Which of the following statements about business processes is true?
a. They are executed across multiple functions. c. They involve multiple steps.
b. They are initiated by some type of trigger. D. All of the above
4. Which term refers to all of the activities involved in buying or acquiring the materials used by the
organization, such as raw materials needed to make products?
a. Material Planning b. Production Process
b. Procurement Process d. Fulfillment Process
5. What is the final step of the procurement process?
a. Invoice c. Purchase Order
b. Purchase Requisition d. Payment
6. Which system connects a company’s ERP system to those of its customers?
a. Application Platform c. Enterprise Solution
b. Customer Relationship Management (CRM) d. Product Lifecycle Management (PLM)
7. The highest organizational level in SAP ERP is the
a. Vendor c Material Master
b. Client d. Plant
8. Which of the following is(are) used to represent the structure of an enterprise?
a. Organizational Data c. Client
b. Project Management d. Plant
9. How many company codes can a plant belong to?
a. One c. Three
b. Two d. Any Number
10. What type of materials is purchased from a vendor?
a. Trading Goods c. Semi-finished Goods (HALB)
b. Finished Goods (FERT) d. Material Types
11. All of the following are key organizational elements in the fulfillment process except
a. Client c. Plant
b. Company code d. Warehouse

12. Which one of the following combinations of organizational elements is included in the definition of a
sales area?
a. Sales organization, distribution channel, division
 b. Sales organization, company code, division
c. Client, distribution channel, division
d. Sales organization, distribution channel, plant

13. In the fulfillment process, a plant is

a. A facility from which the company provides after-sales support
b. A facility from which the company delivers only services to its customers
c. A storage area
d. A facility from which the company delivers products and services to its customers

14. Which master data do companies use to determine the prices of their products?
a. Price comparison c. Selling price
b. Pricing conditions d. Wholesale price

15. What is the final step in the fulfillment process?

a. Delivery of goods to the customer c. Receipt of a customer purchase order
b. Receipt of payment from the customer d. Receipt of goods from a vendor

16. A purchasing organization is involved in all of the following operations except

a. Negotiating contracts and agreements c. Evaluating and identifying vendors
b. Negotiating pricing with vendors d. Determining storage locations within the plant
17. Which of the following document types is not utilized during the Purchasing process?
a. Material documents c. Picking document
b. CO documents d. Invoice
18. Which of the following goods movements need not involve a physical movement of materials?
a. Goods receipt c. Stock transfer
b. Goods issue d. Transfer posting
19. ____________ is concerned with recording the financial impacts of business processes as they
are executed.
a. Management accounting c. Controlling (CO)
b. Financial accounting (Fl) d. Bank ledger accounting
20. Which term refers to an ordered listing of accounts that comprise a company’s general ledger?
a. General ledger c. Bank ledger
b. Balance sheet d. Chart of accounts (COA)
21. ____________ are internal divisions of an enterprise that are used to define areas of responsibility or
to meet the external reporting requirements of an enterprise segment.
a. Cost centers c. Business areas
b. Depreciation areas d. Sub-ledgers

22. Which term is a general ledger account that consolidates data from a group of related sub-ledger
accounts?
a. Subsidiary ledger c. Reconciliation account
b. Sub-ledger d. Line item display

Answer
1 B 2 B 3 D 4 B 5 D
6 B 7 B 8 A 9 A 10 A
11 D 12 A 13 D 14 B 15 B
16 D 17 B 18 D 19 B 20 D
21 C 22 C