National University

Information Technology for Business Value

SAMPLE QUIZ #01

MCQ’s

01. What is the primary purpose of Enterprise Resource Planning (ERP) systems in
business?
- A) Email communication
- B) Data analysis
- C) Integrated management of core business processes
- D) Graphic design
Answer: C

02. What does the acronym ROI stand for in the context of IT for business?
- A) Return on Investment
- B) Rate of Interest
- C) Risk of Inefficiency
- D) Revenue of Innovation
Answer: A

03. How does Customer Relationship Management (CRM) software contribute to

business value?
- A) By managing internal communications
- B) By enhancing customer interactions and relationships
- C) By automating financial processes
- D) By creating graphic designs
Answer: B
04. What is the primary role of a Business Intelligence (BI) system in business?
- A) Managing human resources
- B) Analyzing and interpreting business data
- C) Creating marketing strategies
- D) Designing user interfaces
Answer: B

05. Which IT concept involves providing computing resources over the internet on a
pay-as-you-go basis?
- A) Intranet
- B) Extranet
- C) Cloud computing
- D) Virtualization
Answer: C

06. How does e-commerce contribute to business value?

- A) By increasing office expenses
- B) By reducing customer reach
- C) By enabling online buying and selling
- D) By limiting product availability
Answer: C

07. What is the purpose of Supply Chain Management (SCM) software?

- A) Managing employee schedules
- B) Optimizing and coordinating the flow of goods and services
- C) Creating social media campaigns
- D) Maintaining office supplies
Answer: B
08. How can the implementation of IT security measures enhance business value?
- A) By slowing down business processes
- B) By protecting sensitive data and ensuring business continuity
- C) By increasing operational costs
- D) By limiting employee access to information
Answer: B

09. What is the purpose of a Content Management System (CMS) in business?

- A) Managing financial transactions
- B) Controlling inventory
- C) Creating and organizing digital content
- D) Designing logos and graphics
Answer: C

10. How does Big Data analytics contribute to business value?

- A) By increasing hardware costs
- B) By processing large volumes of data to extract valuable insights
- C) By decreasing data storage requirements
- D) By automating customer service
Answer: B

11. Which IT strategy involves outsourcing non-core business functions to external

providers?
- A) Insourcing
- B) Offshoring
- C) Crowdsourcing
- D) Outsourcing
Answer: D
12. What is the role of a Customer Support System in business?
- A) Managing employee benefits
- B) Providing assistance and resolving customer issues
- C) Creating marketing campaigns
- D) Developing new products
Answer: B

13. How does IT contribute to business innovation?

- A) By maintaining traditional business practices
- B) By automating routine tasks
- C) By enabling the development of new products, services, or processes
- D) By limiting communication channels
Answer: C

14. What is the significance of a Mobile Device Management (MDM) system in

business?
- A) Managing office furniture
- B) Ensuring security and control of mobile devices used by employees
- C) Designing company logos
- D) Analyzing financial statements
Answer: B

15. How does Social Media Integration contribute to business value?

- A) By reducing employee engagement
- B) By limiting brand visibility
- C) By enhancing online presence, communication, and customer engagement
- D) By eliminating customer feedback
Answer: C
16. What is the primary function of Business Process Automation (BPA) software?
- A) Managing office supplies
- B) Streamlining and automating business processes
- C) Designing marketing collateral
- D) Analyzing market trends
Answer: B

17. How does IT governance contribute to business value?

- A) By reducing data security measures
- B) By limiting employee access to technology
- C) By ensuring that IT aligns with business objectives and regulations
- D) By eliminating the need for IT support
Answer: C

18. What is the purpose of a Virtual Private Network (VPN) in business?

- A) Managing financial transactions
- B) Ensuring secure communication over the internet
- C) Designing user interfaces
- D) Controlling inventory
Answer: B

19. How does IT enable data-driven decision-making in business?

- A) By relying solely on intuition and experience
- B) By automating all decision-making processes
- C) By providing access to relevant and accurate data for informed decisions
- D) By limiting data access to a select few employees
Answer: C
20. In the context of IT for business, what is the purpose of Business Continuity
Planning (BCP)?
- A) Managing office events
- B) Ensuring the organization's ability to continue essential operations in the event of
a disruption
- C) Designing promotional materials
- D) Controlling employee attendance
Answer: B