Unit Test

Module 3: Information Systems Acquisition

Name: Lesson No.: 7
Course & Section: BSIS 3A Date: Dec. 8, 2020

Multiple Choice
Direction: Select the best answer among the options. Write the letter only.

1. Which of the following functions is NOT typically outsourced by the organization?

a. helpdesk services c. staff recruiting
b. web design and maintenance d. application development and software
maintenance

2. Writing of business applications by the nonprogrammer users is associated to ________ alternative of

software development.
a. user-developed application c. licensing applications
b. outsourcing d. renting software

3. The following items are guidelines to end-user development of applications, EXCEPT…

a. end user have the necessary skills c. the application is small
b. application can be maintained by the service d. the application is needed immediately
providers

4. The major advantage of renting software is the ________.

a. applications can be maintained by the end c. high-quality packaged software
users
b. flexibility of choice and the lower sums d. risk of miscalculation is eliminated

5. The practice of obtaining application to a professional from another country is referred to as ________.
a. outsourcing c. inshoring
b. outshoring d. offshoring

6. Outsourcing is typically a ________ contractual relationship.

a. long-term c. short-term
b. medium-term d. average-term

7. The benefits that can be acquired from outsourcing of software include the following, EXCEPT…
a. gain industry experience c. link IT and business process
b. reduce costs d. improve IT performance

8. Which of the following alternatives of software development is most critical to disclosing of trade secrets?
a. licensing applications c. outsourcing
b. renting software d. user-developed application

9. Which of the following approaches to software development produces a software that is fairly simple and
limited in scope?
a. user application development c. renting software
b. outsourcing d. licensing applications
1 |IS 302 – IS Strategy, Management and Acquisition
10. The ________ is the most important element of an outsourcing agreement for both parties.
a. service-level partnership c. service-level objective
b. service-level contract d. service-level agreement

Modified True-or-False
Direction: Write TRUE if the statement is correct but if it’s false, REWRITE the statement so that it is true.

11. The number of companies developing applications in-house has increased in recent years.
12. Organizations contract for IT services to focus on their in-house responsibility and to better manage risks.
13. Outsourcing of strategic systems completely eliminates the risk of disclosing trade secrets.
14. The specific nature of the system solution determines the required skills and size of the project team.
15. Applications developed by user-developers are of higher quality than the systems developed by professional.
16. Renting software allows unlimited use of the application.
17. Clients are companies that provide hardware and software.
18. The outcome of the system is determined by how the way the system is managed.
19. Lack of documentation makes system maintenance easy at best and impossible at worst.
20. A purchaser actually purchases a license to use the software, not the software itself.

Discussion Question: (10 pts.)

21. Explain why outsourcing of strategic or core business information systems incurs more risk than outsourcing
routine tasks of operational information systems.

2 |IS 302 – IS Strategy, Management and Acquisition