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MIS 2017 - Laudon 15th Edition - Test Bank - Quiz and Answers - Chapter 14

MBA MIS - Management Information Systems

MBA - MIS - Management Information Systems - Case Study Guides and Test Banks

Management Information Systems, 15e (Laudon)

Chapter 14   Managing Projects

1) On average, private sector IT projects underestimated budget and delivery time of systems by ________ percent.

  1. A) 30
  2. B) 40
  3. C) 50
  4. D) 60
  5. E) 70

Answer:  C

Difficulty:  3: Challenging

AACSB:  Reflective thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

 

2) As discussed in the chapter, which of the following is not one of the immediate consequences of inadequate software project management?

  1. A) Cost overruns
  2. B) Customer loyalty
  3. C) Time slippage
  4. D) Technical shortfalls
  5. E) Failure to obtain anticipated benefits

Answer:  B

Difficulty:  3: Challenging

AACSB:  Analytical thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

 

3) Which of the following is not one of the five main variables affecting project success?

  1. A) Risk
  2. B) Vendors
  3. C) Time
  4. D) Quality
  5. E) Cost

Answer:  B

Difficulty:  3: Challenging

AACSB:  Reflective thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

4) You have been hired to implement an enterprise system that will automate much of the billing and accounting work for a statewide HVAC services company. Which of the following would you prepare to describe how the new system will affect a firm's structure and operations?

  1. A) Information systems plan
  2. B) Internal integration report
  3. C) Sociotechnical design report
  4. D) Organizational impact analysis
  5. E) Strategic planning document

Answer:  D

Difficulty:  3: Challenging

AACSB:  Analytical thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

 

5) All of the following are indications of a failed information systems project except:

  1. A) employees are refusing to switch to the new system.
  2. B) employees have created a spreadsheet solution to manipulate the data generated by the system.
  3. C) a redesigned website has fewer visits to the customer support pages.
  4. D) employees require training to properly use the system.
  5. E) the system is not being used by anyone.

Answer:  D

Difficulty:  3: Challenging

AACSB:  Reflective thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

 

6) Which of the following project management variables defines what work is or is not included in a project?

  1. A) Goals
  2. B) Risk
  3. C) Quality
  4. D) Scope
  5. E) Cost

Answer:  D

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

7) Which of the following statistics from studies on failed projects is not true?

  1. A) Large software projects on average run 33 percent over schedule.
  2. B) Large software projects on average run 66 percent over budget.
  3. C) Between 30 and 40 percent of all software projects are "runaway" projects that far exceed the original schedule and budget projections and fail to perform as originally specified.
  4. D) As many as 17 percent of projects turn out so badly that they can threaten the existence of the company.
  5. E) The average cost overrun of IT projects is 20 percent.

Answer:  E

Difficulty:  3: Challenging

AACSB:  Reflective thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

 

 

 

 

8) The cost of a project is based on the time to complete a project multiplied by the cost of human resources required to complete the project.

Answer:  TRUE

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

 

9) An information system project's scope is directly related to its business requirements.

Answer:  TRUE

Difficulty:  2: Moderate

AACSB:  Analytical thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

 

10) Project management refers to the application of knowledge, skills, tools and techniques to achieve specific targets within specified budget and time constraints.

Answer:  TRUE

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

11) Which of the following variables in project management is an indicator of how well the project satisfies management objectives?

  1. A) Scope
  2. B) Quality
  3. C) Time
  4. D) Cost
  5. E) Risk

Answer:  B

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

 

12) The data entry screen is an example of a user interface.

Answer:  TRUE

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

 

13) According to a 2015 report by 1E, over 50% of all software installed is not being used.

Answer:  FALSE

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-1: What are the objectives of project management, and why is it so essential in developing information systems?

 

14) Which of the following is at the top of the management structure for information systems projects in a large company? A) Project team

  1. B) Project management group
  2. C) Corporate strategic planning group and information systems steering committee
  3. D) Information systems managers
  4. E) End-user managers

Answer:  C

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

15) The ________ reviews and approves plans for systems in all divisions.

  1. A) project management group
  2. B) project team
  3. C) information systems steering committee
  4. D) corporate strategic planning committee
  5. E) board of directors

Answer:  C

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

16) The ________ consists of systems analysts, specialists from the relevant end-user business areas, application programmers, and perhaps database specialists.

  1. A) project management group
  2. B) project team
  3. C) IS steering committee
  4. D) corporate strategic planning committee
  5. E) system planning committee

Answer:  B

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

 

17) The ________ is directly responsible for the individual systems project.

  1. A) project management group
  2. B) project team
  3. C) IS steering committee
  4. D) corporate strategic planning committee
  5. E) systems planning committee

Answer:  B

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

18) A road map indicating the direction of systems development, the rationale, the current systems, new developments to consider, the management strategy, the implementation plan, and the budget is called a(n):

  1. A) project plan.
  2. B) portfolio analysis.
  3. C) information systems plan.
  4. D) enterprise analysis.
  5. E) strategic planning document.

Answer:  C

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

19) Which of the following best describes the central method used in a portfolio analysis?

  1. A) Performing an inventory all of the organization's information systems projects and assets
  2. B) Performing a weighted comparison of the criteria used to evaluate a system
  3. C) Surveying a large sample of managers on their objectives, decision-making process, and uses and needs for data and information
  4. D) Interviewing a small number of top managers to identify their goals and criteria for achieving success
  5. E) Scoring proposed systems on a number of dimensions, and select the one with the highest score.

Answer:  A

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

20) A firm in the finance industry should do which of the following to ensure that it stays current with technology?

  1. A) Select only low-cost, low risk projects
  2. B) Limit work to those projects with great rewards.
  3. C) Select only low-risk, high-reward projects.
  4. D) Have a few high-risk, high benefit projects
  5. E) Avoid projects that were very costly.

Answer:  D

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

21) Which method would you use to develop risk profiles for a firm's information system projects and assets?

  1. A) Information systems plan
  2. B) Scoring model
  3. C) Portfolio analysis
  4. D) TCO
  5. E) Real options model

Answer:  C

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

22) You have been hired by a firm in a non-information-intensive industry to evaluate its inventory of systems and IT projects. Which types of projects should the firm focus on?

  1. A) High-risk projects
  2. B) Low cost, low-benefit projects
  3. C) High-benefit, low-risk projects
  4. D) Any project that might be beneficial
  5. E) Low cost, high benefit projects

Answer:  C

Difficulty:  3: Challenging

AACSB:  Analytical thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

23) Which of the following best describes the central method used in a scoring model?

  1. A) Performing an inventory all of the organization's information systems projects and assets
  2. B) Performing a weighted comparison of the criteria used to evaluate a system
  3. C) Surveying a large sample of managers on their objectives, decision-making process, and uses and needs for data and information
  4. D) Interviewing a small number of top managers to identify their goals and criteria for achieving success
  5. E) Calculating the return on investment for each system, and choose the system with the best return

Answer:  B

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

24) Which method is used to assign weights to various features of a system?

  1. A) Information systems plan
  2. B) Scoring model
  3. C) Portfolio analysis
  4. D) TCO
  5. E) Real options model

Answer:  B

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

25) Which of the following statements about scoring models is not true?

  1. A) There are many qualitative judgments involved in using a scoring model.
  2. B) A scoring model is useful for selecting projects where many criteria must be considered.
  3. C) The most important outcome of a scoring model is the score.
  4. D) A scoring model requires experts who understand the issues and the technology.
  5. E) It is appropriate to cycle through a scoring model several times.

Answer:  C

Difficulty:  3: Challenging

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

26) The information systems steering committee is composed of information systems managers and end-user managers responsible for overseeing several specific information systems projects.

Answer:  FALSE

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

27) An information systems plan contains a statement of corporate goals and specifies how information technology will support the attainment of those goals.

Answer:  TRUE

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

28) If an intended benefit of an IT project is improved decision making, managers should develop a set of metrics to quantify the value of an improved decision.

Answer:  TRUE

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

29) Scoring models are most commonly used to make the final decision when selecting different systems.

Answer:  FALSE

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

30) The criteria used in a scoring model are usually the result of lengthy discussions among the decision-making group.

Answer:  TRUE

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

31) You are working as a project manager for a small IT consulting firm and have been asked to create a plan for reviewing and auditing completed projects in order to gauge their success. What factors will you use to measure the success of a project? What questions would you ask in order to understand why a project succeeded or failed?

Answer:  Student answers will vary but should include an understanding of the main project variables: scope, time, cost, quality, and risk. A sample answer is:

The factors I would use are:

  • Cost: What was the original budget and final budget?
  • Time: What was the original schedule and final schedule?
  • Quality: Did the project meet the requirements outlined in the project plan?
  • Scope: Did the scope of the project change?

Questions I would ask to understand the success or failure of the project would be:

  • What technical difficulties were experienced and which could have been foreseen?
  • What risks did the project entail?
  • What events led to the scope changing?
  • What difficulties occurred that were a consequence of personal, employee-oriented problems?
  • What difficulties occurred that were a consequence of environmental, organizational, or managerial challenges?
  • What do project team members consider as the primary challenges?
  • What do clients or stakeholders consider as the primary challenges?

Difficulty:  3: Challenging

AACSB:  Written and oral communication; Analytical thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

32) Describe the elements of a management structure for information systems projects in a large corporation.

Answer:  In a large corporation, the management structure typically consists of (from top to bottom levels in the hierarchy):

  • Corporate strategic planning group: The higher level group of managers responsible for developing the firm's strategic plan.
  • Information systems steering committee: A senior management group with responsibility for systems development and operation.
  • Project management: A group of information systems managers and end-user managers responsible for overseeing several specific information systems projects.
  • Project team: The group directly responsible for the individual systems project, consisting of systems analysts, specialists from the relevant end-user business areas, application programmers, and perhaps database specialists.

Difficulty:  3: Challenging

AACSB:  Written and oral communication; Analytical thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

33) List five types of information that should be included in an information systems plan.

Answer:  General categories of information included in an information plan are:

  • Purpose of the plan
  • Business rationale
  • Current systems or situation
  • New developments to consider
  • Management strategy
  • Implementation plan
  • Budget

Difficulty:  3: Challenging

AACSB:  Analytical thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

34) You have been hired as a consultant for a nationwide real estate firm, Cross & Deptford, who are interested in achieving better organization between branches by updating their information systems, but are not sure what will suit their needs. What will you recommend they do in order to determine the most effective IT projects?

Answer:  Cross & Deptford first should have an information systems plan created to determine what their information requirements are and what systems will support their business goals. They will need to inventory their existing systems and develop metrics to quantify any future improvements are made. They can use portfolio analysis and/or scoring models to help determine the most important information systems projects to pursue.

Difficulty:  3: Challenging

AACSB:  Written and oral communication; Analytical thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

35) Describe the process of portfolio analysis. In what situations is this evaluation method useful?

Answer:  Portfolio analysis inventories all of the organization's information systems projects and assets, including infrastructure, outsourcing contracts, and licenses. Each project can be described as having a profile of risk and benefit to the firm, similar to the financial portfolio. In a portfolio analysis, you would list the various systems projects and rate them according to their potential risks and benefits. You would use the portfolio analysis to determine which potential projects should be pursued and which should be modified or abandoned. High-risk, low-benefit projects should be avoided, while low-risk, high-benefit projects would be at the top of the list. High-benefit, high-risk projects and low-risk, low-benefit projects would be reexamined to see if they could be modified to better fit with the company's strategic plans. A mix of profiles could also be defined as acceptable in terms of the company's overall plans, much as is done with a financial portfolio.

Difficulty:  3: Challenging

AACSB:  Written and oral communications; Analytical thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

36) You have been hired as a consultant to make recommendations for Smarty's, a healthy fast-food chain that is undergoing major expansion and is in need of a supply chain planning system. They are evaluating two commercially available software packages. What systems evaluation model will help them assess and compare the two packages? How does this model work?

Answer:  A scoring model can be used for selecting projects where many criteria must be considered. It assigns weights to various features of a system and then calculates the weighted totals. What Smarty's would do is have decision makers such as top managers list the various features they feel are important to have in the system, such as the processes that need support or reports they may need from the system. Each feature, or criteria, the managers list is given a weight, or rating, in terms of how important it is overall to have in the system. Each package then is evaluated in terms of the percentage of requirements it contributes or supports for each criteria. In the scoring model, you multiply the weight with the software's percentage of contribution to arrive at a score for each criteria. The scores of both software packages are totaled and compared to see overall their contribution to fulfilling the company's requirements.

Difficulty:  3: Challenging

AACSB:  Written and oral communications; Analytical thinking

LO:  14-2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

37) You are using a capital budgeting method to assess the worth of your company's new information system. Which of the following costs would you include in measuring the cash outflow?

  1. A) Increased sales of products
  2. B) Hardware and software expenditures
  3. C) Labor expenditures
  4. D) Reduced costs in production and operation
  5. E) Hardware, software, and labor expenditures

Answer:  E

Difficulty:  2: Moderate

AACSB:  Analytical thinking

LO:  14-3: How can firms assess the business value of information systems?

 

38) The worth of systems from a financial perspective essentially revolves around the issue of:

  1. A) total cost of ownership.
  2. B) adherence to information requirements.
  3. C) asset utilization.
  4. D) return on invested capital.
  5. E) the cost of computing equipment.

Answer:  D

Difficulty:  1: Easy

AACSB:  Analytical thinking

LO:  14-3: How can firms assess the business value of information systems?

39) All of the following are intangible benefits of information systems except:

  1. A) improved asset utilization.
  2. B) increased organizational learning.
  3. C) improved operations.
  4. D) reduced workforce.
  5. E) employee morale.

Answer:  D

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

 

40) Which of the following is not a tangible benefit of information systems?

  1. A) Reduced rate of growth in expenses
  2. B) Lower computer expenses
  3. C) Improved resource control
  4. D) Increased productivity
  5. E) End user satisfaction

Answer:  C

Difficulty:  3: Challenging

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

 

41) The principal capital budgeting models for evaluating information technology projects are the payback method, the accounting rate of return on investment (ROI), the net present value, and the:

  1. A) future present value.
  2. B) internal rate of return.
  3. C) external rate of return.
  4. D) ROPM (real options pricing model).
  5. E) present value of future cash flows

Answer:  B

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

42) Which of the following strategies represents the proper approach to a high risk, high reward project?

  1. A) Identify and develop
  2. B) Avoid
  3. C) Treat as a routine project
  4. D) Pursue after all other projects are complete
  5. E) Cautiously examine

Answer:  E

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

43) Enhanced employee goodwill falls under what category of costs and benefits of information systems?

  1. A) Costs
  2. B) Tangible benefits
  3. C) Cost savings
  4. D) Intangible costs
  5. E) Intangible benefits

Answer:  E

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

44) Counterimplementation is best defined as:

  1. A) multiple implementations that are run in parallel.
  2. B) deliberate attempts to thwart the implementation of a system.
  3. C) critiquing the implementation of a system constructively.
  4. D) all of the organizational challenges involved in implementing a system.
  5. E) strategies used to overcome user resistance to change.

Answer:  B

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

45) Which of the following is a limitation of using a financial approach to evaluate information systems?

  1. A) Inability to measure ROI
  2. B) Inability to control vendor costs
  3. C) Inability to assess risk
  4. D) Inability to assess costs from organizational disruption
  5. E) Inability to assess the cost of technology

Answer:  D

Difficulty:  1: Easy

AACSB:  Analytical thinking

LO:  14-3: How can firms assess the business value of information systems?

 

46) Transaction and clerical systems that displace labor and save space typically produce more measurable, tangible benefits than management information systems.

Answer:  TRUE

Difficulty:  3: Challenging

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

 

47) Intangible benefits generally do not lead to quantifiable gains in the long run.

Answer:  TRUE

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

 

48) A benefit of using TCO analysis to evaluate an information technology investment is that it is able to incorporate intangible and "soft" factors such as benefits and complexity costs.

Answer:  FALSE

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

 

49) More timely information is a intangible benefit of information systems.

Answer:  TRUE

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

50) The difference between cash outflows and cash inflows is used for calculating the financial worth of an investment.

Answer:  TRUE

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

 

51) ________ methods rely on measures of cash flows into and out of the firm.

  1. A) Scoring model
  2. B) Portfolio analysis
  3. C) Real options pricing
  4. D) Capital budgeting
  5. E) Cost effectiveness

Answer:  D

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

 

52) In one strategic approach to determining information requirements, managers select a small number of ________ that reflect firm success and profitability.

  1. A) efficiency measures
  2. B) output measures
  3. C) strategic indicators
  4. D) key performance indicators
  5. E) financial indicators

Answer:  D

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-3: How can firms assess the business value of information systems?

 

53) Differentiate between intangible and tangible benefits and list three examples of each. In what types of systems are intangible benefits more predominant?

Answer:  Tangible benefits can be quantified and given a monetary value. For example, a monetary value can be given to increased productivity, lower operational costs, reduced workforce, lower computer expenses, lower outside vendor costs, lower clerical and professional costs, reduced rate of growth in expenses, and reduced facility, telecommunications, software, services, and personnel costs.

Intangible benefits cannot be immediately quantified but may lead to quantifiable gains in the long run, such as higher sales. Examples of intangible benefits include: improved asset utilization, resource control, organizational planning, decision making, operations, increased flexibility, learning, job satisfaction, client satisfaction, employee goodwill, more timely information and more information, the fulfillment of legal requirements and a better corporate image.

Systems that produce more intangible benefits are MIS, DSS, and collaborative work systems.

Difficulty:  3: Challenging

AACSB:  Written and oral communication; Analytical thinking

LO:  14-3: How can firms assess the business value of information systems?

  1. You are a senior manager at a mid-sized regional retail chain. The company’s IT manager approaches you with a project that would completely overhaul the company’s information system infrastructure, generating significant risk; but if executed successfully, would dramatically improve the company’s overall efficiency. How should you proceed?

Answer: Using the portfolio analysis approach, this type of project is a high-risk, high-reward project, and should be considered carefully. Student answers may vary about how to proceed, but should involve mention of a scoring models to compare the system to other choices and soliciting input from employees across many areas of the firm to determine their willingness to take on risk and endure organizational change.

Difficulty:  3: Challenging

AACSB:  Written and oral communication; Analytical thinking

LO:  14-3: How can firms assess the business value of information systems?

55)  All of the following are directly correlated with increased risk except:

  1. A) a large amount of technical expertise from project team and information team staff
  2. B) a large amount of dollars spent
  3. C) a large amount of implementation staff
  4. D) a large amount of time allocated for implementation
  5. E) a large amount of organizational units affected

Answer:  A

Difficulty:  2: Moderate

AACSB:  Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

56) Which of the following statements best describes the effect that project structure has on overall project risk?

  1. A) Highly structured projects are more complex, and run a higher risk of programmers and users misunderstanding the ultimate goals.
  2. B) Projects with relatively undefined goals are more likely to be subjected to users changing requirements and to run a higher risk of not satisfying project goals.
  3. C) Highly structured projects tend to be larger, affecting more organizational units, and run both the risk of out-of-control costs and becoming too difficult to control.
  4. D) Less structured projects are more able to be quickly developed, tested, and implemented using cutting-edge RAD and JAD development techniques, and pose less risk of running up unforeseen costs.
  5. E) The less structured a project, the greater the freedom of users to define the system

Answer:  B

Difficulty:  2: Moderate

AACSB:  Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

57) Which of the following statements about project risk is not true?

  1. A) The more dollars spent on project, the greater the risk.
  2. B) The higher the number of implementation staff on a project, the lower the risk.
  3. C) The higher the number of organizational units affected by a project, the greater the risk.
  4. D) Very large-scale systems project have a failure rate that is 50 to 75 percent higher than that for other projects.
  5. E) The organizational complexity of a system contributes to the complexity of large-scale systems projects.

Answer:  B

Difficulty:  3: Challenging

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

58) Which of the following refers to all organizational activities working toward the adoption, management, and routinization of a new information system?

  1. A) Production
  2. B) Maintenance
  3. C) Implementation
  4. D) Acceptance
  5. E) Final acceptance

Answer:  C

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

59) Which of the following would not be covered in the Strategic Business Plan Rationale section of an information systems plan?

  1. A) Current situation
  2. B) Current business organization
  3. C) Firm’s strategic plan
  4. D) Changing environments
  5. E) Current infrastructure capabilities

Answer:  E

Difficulty:  2: Moderate

AACSB:  Analytical thinking

LO:  14.2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

60) Which of the following would not be covered in the Management Strategy section of an information systems plan?

  1. A) Acquisition plans
  2. B) Progress reports
  3. C) Organizational realignment
  4. D) Internal reorganization
  5. E) Major training initiatives

Answer:  A

Difficulty:  1: Easy

AACSB:  Analytical thinking

LO:  14.2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

 

61) Which of the following would not be covered in the Budget Requirements section of an information systems plan?

  1. A) Requirements
  2. B) Potential savings
  3. C) Difficulties meeting business requirements
  4. D) Financing
  5. E) Acquisition cycle

Answer:  C

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14.2: What methods can be used for selecting and evaluating information systems projects and aligning them with the firm's business goals?

62) Which of the following is not one of the activities of the systems analyst?

  1. A) Acting as a change agent
  2. B) Communicating with users
  3. C) Mediating between competing interest groups
  4. D) Formulating of capital budgeting models
  5. E) Deciding which systems to develop

Answer:  D

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

63) Which of the following types of projects is most likely to fail?

  1. A) Integration of a third-party automated payment system
  2. B) Replacement of middleware with web services for legacy application integration
  3. C) Business process redesign project that restructures workflow and responsibilities
  4. D) Redesigning a user interface to an online investment site
  5. E) Building a web-based interface to an existing system

Answer:  C

Difficulty:  2: Moderate

AACSB:  Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

64) Which of the following is not a responsibility of effective change management?

  1. A) Integrating legacy systems
  2. B) Dealing with fear and anxiety about new systems
  3. C) Training users of the new system
  4. D) Enforcing user participation at all stages of system development
  5. E) Ensuring users are properly trained

Answer:  A

Difficulty:  2: Moderate

AACSB:  Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

65) Which of the following is not something you would use to control risk factors in an information systems project?

  1. A) Internal integration tools
  2. B) External integration tools
  3. C) Formal planning tools and formal control tools
  4. D) Real options pricing models
  5. E) Gantt charts

Answer:  D

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

66) Internal integration tools:

  1. A) enable a project to have sufficient technical support for projects with challenging and complex technology.
  2. B) enable a project manager to properly document and monitor project plans.
  3. C) portray a project as a network diagram with numbered nodes representing project tasks.
  4. D) consist of ways to link the work of the implementation team with users at all organization levels.
  5. E) enable end users to communicate with system developers.

Answer:  A

Difficulty:  3: Challenging

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

67) Which of the following is an example of using an internal integration tool?

  1. A) Creating a Gantt chart
  2. B) Including user representatives as active members of the project team
  3. C) Creating PERT chart
  4. D) Holding frequent project team meetings
  5. E) Developing a scoring model

Answer:  D

Difficulty:  2: Moderate

AACSB:  Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

68) Formal planning and control tools:

  1. A) are used to select projects where many criteria must be considered.
  2. B) enable a project manager to properly document and monitor project plans.
  3. C) are used to evaluate alternative systems projects.
  4. D) link the work of the implementation team with users at all organization levels.
  5. E) serve as a road map indicating the direction of systems development.

Answer:  B

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

69) Which type of planning tool shows each task as a horizontal bar whose length is proportional to the time required to complete it?

  1. A) PERT chart
  2. B) Gantt chart
  3. C) Both a PERT chart and a Gannt chart
  4. D) Scoring model
  5. E) Portfolio analysis

Answer:  B

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

70) To review a project's tasks and their interrelationships, you would use which of the following?

  1. A) PERT chart
  2. B) Gantt chart
  3. C) PERT chart or a Gantt chart
  4. D) Scoring model
  5. E) Portfolio analysis

Answer:  A

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

71) Which of the following helps project managers identify bottlenecks in project development?

  1. A) Internal integration tools
  2. B) External integration tools
  3. C) Formal planning and control tools
  4. D) Both internal and external integration tools
  5. E) Portfolio analysis tools

Answer:  C

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

72) External integration tools:

  1. A) enable a project to have sufficient technical support for project management and development.
  2. B) enable a project manager to properly document and monitor project plans.
  3. C) portray a project as a network diagram with numbered nodes representing project tasks.
  4. D) consist of ways to link the work of the implementation team with users at all organization levels.
  5. E) enable project team members to keep track of external costs of a project.

Answer:  D

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

73) Which of the following is an example of using an external integration tool?

  1. A) Creating a Gantt chart
  2. B) Including user representatives as active members of the project team.
  3. C) Creating a PERT chart.
  4. D) Using portfolio analysis.
  5. E) Developing a scoring model,

Answer:  B

Difficulty:  3: Challenging

AACSB:  Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

74) Which of the following is not an organizational factor in systems planning and implementation?

  1. A) Standards and performance monitoring
  2. B) Government regulatory compliance
  3. C) Health and safety
  4. D) User interface
  5. E) Ergonomics

Answer:  D

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

75) In sociotechnical design:

  1. A) separate sets of technical and social design solutions are developed and compared.
  2. B) ergonomic features of a system are considered to be the most important consideration.
  3. C) systems analysts with proven backgrounds in sociological concerns rate and compare a system's social and technical aspects.
  4. D) human needs are given more importance than technical needs.
  5. E) technical needs are given more importance than organizational needs.

Answer:  A

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

76) Which of the following is the most widely used project management software today?

  1. A) Vertabase
  2. B) IBM Project Guide
  3. C) Microsoft Project
  4. D) Microsoft Excel
  5. E) Zoho Projects

Answer:  C

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

77) The larger the systems project, the greater the chance that the project will be completed on time, within budget, and according to project requirements.

Answer:  FALSE

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

78) The systems analyst is the catalyst for the entire change process and is responsible for making sure that everyone involved accepts the changes created by a new system.

Answer:  TRUE

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

79) The relationship between users and information systems specialists has traditionally been a problem area for information systems implementation efforts.

Answer:  TRUE

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

80) User concerns and designer concerns are usually the same at the beginning of the project but may diverge later as the system is built.

Answer:  FALSE

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

81) A Gantt chart graphically depicts project tasks and their interrelationships.

Answer:  FALSE

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

82) Mandatory use of a system is one effective way of overcoming user resistance to an information system.

Answer:  FALSE

Difficulty:  2: Moderate

AACSB:  Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

83) Counterimplementation refers to a deliberate strategy to thwart the implementation of an information system or an innovation in an organization.

Answer:  TRUE

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

84) The design of jobs, health issues, and the end-user interface of information systems are all considerations in the field of ergonomics.

Answer:  TRUE

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

85) The goal of sociotechnical design is to create systems where the organization and the technology change and adjust to one another.

Answer:  TRUE

Difficulty:  3: Challenging

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

86) Successful system building requires careful ________ management to minimize organizational resistance.

  1. A) cost
  2. B) technology
  3. C) change
  4. D) supply chain
  5. E) system application

Answer:  C

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

87) Which of the following statements about the user-designer communications gap is not true?

  1. A) It occurs because users and information systems specialists tend to have different backgrounds, interests, and priorities.
  2. B) It is one of the major reasons why user requirements are not properly incorporated into information systems.
  3. C) It is one of the major reasons why users are driven out of the implementation process.
  4. D) When it is pronounced, it creates a very high risk of failure for a systems development project.
  5. E) Information systems specialists prefer systems that are oriented toward solving business problems or facilitating organizational tasks.

Answer:  E

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

88) Ergonomics is the interaction of people and machines in the work environment, including the design of jobs, health issues, and the end-user interface of information systems.

Answer:  TRUE

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

89) You are the senior project manager for a web development company with upwards of 100 current client projects. You have been assigned to evaluate two upcoming projects. One project is to develop a time- tracking solution that would allow your 20 freelancers to submit daily time sheets and would report on the time spent on each project. The other project is to redesign the client interface to the company extranet to make it easier to use. The extranet allows clients to log in and view their current websites under development, as well as view project statistics, documents, and progress reports. Compare the two projects in terms of risk factors.

Answer:  Student answers will vary but should include an understanding of the main risks factors: size, structure, and technical expertise. An example answer is:

The main risk factors are size, structure, and technical expertise.

  • Size. The time-tracking project is a larger project: It involves creating new programming that may interface with back-end systems and will immediately influence payment and cost. It also affects business processes. Redesigning an interface for the client extranet may simply be designing one or two pages that will be replicated for each client once the initial design is done.
  • Structure. It may be easier to define the requirements of the time-tracking software, as this process is relatively straightforward. Understanding what makes the user interface problematic and defining ways to make it easier to use is somewhat of a less tangible quality than reporting on time, so this may be a concern in the second project.
  • Technical expertise. Since the time-tracking project is a new application, there may be some issues of making sure any in-house staff has the appropriate level of expertise. The user interface involves working with existing programming that will not change. However, there may be a need to make sure that an expert who understands usability is present.

Difficulty:  3: Challenging

AACSB:  Written and oral communication; Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

90) Americlinic, a national chain of budget health-care clinics, is creating an information system that will allow patients and doctors at participating franchises to communicate online. The goal of the system is to allow doctors to respond to minor health questions quickly and more efficiently, saving patients unnecessary visits to the clinic. This will be a major procedural change. What steps would you recommend to this company to ensure the user acceptance of the system?

Answer:  The first step should be to conduct an organizational impact analysis, to determine the changes in procedures, job function, organizational structure, power relationships, and behavior that this system requires or will engender. Any organizational changes should occur prior to implementing the system. In order to gain compliance and support of the doctors, I would establish a review committee of influential participating doctors and change agents to discuss the system prior to development and during development in order to meet physician needs and requirements. I would also involve focus groups of intended users to review prototypes of the system to make sure it is easy to use, and hopefully easier to use in the relevant health situations than going to the doctor. The company will need to make sure that there is also an option for users that do not have Internet access. User training for doctors and nurses will be essential. The company should also consider incentives for doctors and patients that use the system.

Difficulty:  3: Challenging

AACSB:  Written and oral communication; Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

91) Which of the following best describes the relationship between system implementation and user involvement and management support?

  1. A) System implementation rarely benefits from user involvement.
  2. B) System implementation benefits from user support, but does not require management support.
  3. C) System implementation generally benefits from high levels of user involvement and management support.
  4. D) System implementation benefits from management support, but does not require user support.
  5. E) System implementation rarely benefits from management support.

Answer:  C

Difficulty:  2: Moderate

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

92) The differing backgrounds between users and information systems specialists is referred to as the:

  1. A) user expertise gap.
  2. B) information system specialist inefficiency.
  3. C) user-designer paradigm.
  4. D) user-designer expertise gap.
  5. E) user-designer communications gap.

Answer:  E

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

93) Information systems specialists often tend to seek solutions that:

  1. A) are oriented towards solving business problems.
  2. B) facilitate organizational tasks.
  3. C) optimize hardware and software efficiency at the expense of ease of use.
  4. D) are simplistic for end users to understand.
  5. E) employ clear documentation.

Answer:  C

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

94) According to the Project Management Institute, what is the leading factor in project success?

  1. A) Upper management that financially backs the project
  2. B) Executive sponsors who are actively engaged
  3. C) Carefully monitored changes in work habits and procedures
  4. D) Communication between technicians and end users
  5. E) End users who communicate their needs for the project

Answer:  B

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

95) While users are concerned about an information system delivering the information needed for work, designers might be concerned about:

  1. A) accessing the data on iPhones and tablets
  2. B) the procedures required to enter data into the system
  3. C) how operation of the system will change their daily routines
  4. D) what demands the system will place on the company servers
  5. E) opening lines of communication with end users

Answer:  D

Difficulty:  1: Easy

AACSB:  Reflective thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

96) What is the user-designer communications gap? Describe the differences between the types of concerns users and designers have about information systems.

Answer: The user-designer communication gap refers to the tendency for users and information systems specialists to have different backgrounds, interests, and priorities. This often manifests itself in the types of concerns the two groups have about information systems; for example, while a user might simply be concerned whether the information system works properly, the designer is concerned with the demands that the system will put on the company servers. While users might be concerned with the procedures required to enter data into a new system, the designers are likely to be focused on where the data will be stored and the most effective technique to store it.

Difficulty:  2: Moderate

AACSB:  Written and oral communication; Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

97) What is counterimplementation and what are some of the strategies that organizations can use to avoid it?

Answer: Counterimplementation is a deliberate strategy to thwart the implementation of a new information system or innovation in general. Organizations can overcome this resistance by soliciting user participation in the design of a new system, to ensure that employees feel invested in the change; user education and training; encouraging management policies; and employee incentives for those who cooperate and participate.

Difficulty:  2: Moderate

AACSB:  Written and oral communication; Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

98) What are the benefits of the sociotechnical design approach to information systems?

Answer: The sociotechnical design approach features designers setting forth two separate plans – technical solutions and social design solutions. The social design plan will emphasize workgroup structures, allocation of tasks, and the design of individual jobs. If the technical solutions enable the social design plan to also be achieved, then the design can move forward. The result is an information system that blends technical efficiency with sensitivity to organizational and human needs, as opposed to an information system that works properly but is poorly suited to the social environment of the workplace.

Difficulty:  2: Moderate

AACSB:  Written and oral communication; Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

99) What are Gantt charts and PERT charts? In what way might a PERT chart be a better option than a Gantt chart?

Answer: Gantt charts lists project activities and corresponding start and completion dates and visually shows the duration of tasks in a project along with their human resource requirements. Tasks are displayed as horizontal bars whose length represents the amount of time required to complete the task. However, Gantt charts don’t show how one task is affected by others. For example, if delays in a task cause a ripple effect in other tasks, this renders the Gantt chart obsolete. PERT charts graphically depict project tasks and their inter-relationships, much like a flow chart. PERT charts show the activities that must be completed before the next activity can begin.

Difficulty:  2: Moderate

AACSB:  Written and oral communication; Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

100) You are the IT manager for a small online marketing firm looking to determine the best way to budget more capital in information systems projects your firm has completed within the last year. How would you evaluate the worth of your firm’s completed projects?

Answer: Capital budgeting models are techniques used to measure the value of investing in long-term capital investment projects like information systems. The principal capital budgeting models for evaluating an IT project are the payback method, accounting rate of return on investment (ROI), net present value, and the internal rate of return. Each of these methods measures cash flows into and out of the firm, taking account of investment costs of systems as well as the increased sales of products and services made possible by the new systems.

Difficulty:  3: Challenging

AACSB:  Written and oral communication; Analytical thinking

LO:  14-4: What are the principal risk factors in information systems projects, and how can they be managed?

 

 

 

 

 

 

 

 


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