Question 1

Which statement is TRUE about MIS?

Accepted Answer

MIS builds on TPS data and provides reports for planning and control.

Question 2

B2B e-commerce refers to:

Accepted Answer

**B2B** transactions occur between **two businesses** (e.g., manufacturer and supplier).

Question 3

‘GIGO’ in MIS stands for:

Accepted Answer

GIGO means garbage in, garbage out—poor data quality leads to poor information output.

Question 4

Which cloud service model provides ready-to-use software over the internet?

Accepted Answer

**SaaS** delivers complete software applications through the internet (subscription/online access).

Question 5

DSS is mainly useful for:

Accepted Answer

DSS supports semi-structured decision making through what-if, simulation and analytical models.

Question 6

Which statement is TRUE?

Accepted Answer

Operational databases support daily transactions; data warehouses store integrated historical data for analysis.

Question 7

Which analytics answers the question “What should we do?”

Accepted Answer

**Prescriptive analytics** recommends actions/decisions using optimization and rules.

Question 8

DBMS stands for:

Accepted Answer

DBMS is Database Management System, software used to manage databases.

Question 9

Unit testing is mainly performed to test:

Accepted Answer

**Unit testing** validates individual program units/modules before integration.

Question 10

Which control type detects problems after they happen?

Accepted Answer

**Detective controls** identify issues (e.g., logs, exception reports) after occurrence.

Question 11

AI in MIS is most directly used for:

Accepted Answer

AI supports **prediction**, **automation**, and **decision support** (e.g., fraud detection, forecasting).

Question 12

Feedback in a system is used for:

Accepted Answer

Feedback provides information about performance to correct deviations and improve the system.

Question 13

Which CRM component supports lead tracking and sales pipeline management?

Accepted Answer

**Sales force automation** helps manage leads, opportunities, follow-ups and pipeline.

Question 14

Big data is commonly characterized by:

Accepted Answer

Big data is often described using **5Vs**: Volume, Velocity, Variety, Veracity, and Value.

Question 15

A standard in IT security is:

Accepted Answer

**Standards** give measurable requirements (e.g., password length) to implement a policy effectively.

Question 16

MIS mainly provides information for:

Accepted Answer

MIS supports management functions like planning, control and decision making through timely information.

Question 17

A foreign key is mainly used to:

Accepted Answer

Foreign key links one table to another by referencing a primary key in a related table.

Question 18

Which of these is an example of unstructured decision?

Accepted Answer

Strategic decisions like entering a new market are unstructured and need judgement, supported by ESS.

Question 19

Which SDLC model is most suitable when requirements are stable and well-defined?

Accepted Answer

**Waterfall** follows sequential phases and works best when requirements are clear and not changing frequently.

Question 20

The flow from transaction data to strategic decision making is best represented as:

Accepted Answer

TPS captures transactions; MIS summarizes; DSS analyzes; ESS supports strategic decisions with dashboards.

Question 21

Write the full form of TELOS.

Accepted Answer

**TELOS** = **Technical, Economic, Legal, Operational and Schedule** feasibility.

Question 22

What is system analysis?

Accepted Answer

**System analysis** is the study of the existing system to identify problems and collect detailed **user requirements** for the new system.

Question 23

What is feasibility study?

Accepted Answer

**Feasibility study** checks whether a proposed system is practical and worth implementing (technically, economically, legally, operationally and within time).

Question 24

What is ERP?

Accepted Answer

**ERP (Enterprise Resource Planning)** is an integrated system that manages internal business processes (finance, HR, inventory, production, sales) using a common database.

Question 25

Define database.

Accepted Answer

A **database** is an organized collection of related data stored in a structured way for easy access and updating.

Question 26

What is phishing?

Accepted Answer

**Phishing** is a fraud technique where attackers use fake messages/websites to steal sensitive information like passwords and OTPs.

Question 27

Define structured decision.

Accepted Answer

A **structured decision** is routine and follows clear rules/steps (e.g., payroll processing).

Question 28

What is big data?

Accepted Answer

**Big data** refers to very large and complex datasets that traditional systems cannot process efficiently for analysis and decision making.

Question 29

Define data.

Accepted Answer

**Data** are raw facts and figures that are not processed into meaningful form.

Question 30

Write the full form of SaaS.

Accepted Answer

**SaaS** = **Software as a Service**.

Question 31

Explain SCM and its key activities (any four).

Accepted Answer

**SCM** manages the end-to-end supply chain to reduce cost and improve delivery.

Key activities (any four):
- demand forecasting and planning
- procurement and supplier management
- inventory and warehouse management
- logistics/transportation and shipment tracking
- order fulfillment and delivery

Hence, SCM improves coordination from suppliers to customers.

Question 32

Explain CIA triad with suitable examples.

Accepted Answer

The **CIA triad** is the foundation of information security:
- **Confidentiality**: only authorized users can access data (e.g., only HR can view payroll).
- **Integrity**: data remains accurate and is not changed without authorization (e.g., invoice edits require approval).
- **Availability**: systems/data are accessible when needed (e.g., backups and DR keep systems running during failures).

Thus, CIA ensures data is private, correct and accessible.

Question 33

Explain the importance of audit trail in MIS (any four points).

Accepted Answer

Importance of **audit trail** (any four):
- provides **accountability** (who changed what and when)
- helps detect **fraud** and unauthorized activities
- supports investigations and troubleshooting of errors
- improves compliance and supports internal/external audits
- discourages misuse because actions are recorded

Hence, audit trail improves control and trust in MIS reports and transactions.

Question 34

Explain characteristics of a good MIS (any three).

Accepted Answer

Characteristics of good MIS (any three):
- **Accurate** and reliable output
- **Timely** availability of reports
- **Relevant** to user’s decision needs
- **Complete** and consistent data
- **Secure** and user-friendly

(Write any three.)

Question 35

Explain types of testing in SDLC (any three).

Accepted Answer

Types of testing in SDLC (any three):
- **Unit testing**: testing individual modules/components to ensure each unit works correctly.
- **Integration testing**: testing combined modules to verify interfaces and data flow.
- **System testing**: testing the complete system end-to-end against requirements.
- **User Acceptance Testing (UAT)**: end users validate the system meets business needs.

Proper testing reduces errors and improves reliability before deployment.

Question 36

Explain database, data warehouse and data mining with a comparison table and flowchart.

Accepted Answer

### **Database vs Data Warehouse vs Data Mining**

| Item | Focus | Used for |
|---|---|---|
| **Database** | current structured data | day-to-day operations (TPS) |
| **Data warehouse** | integrated historical data | reporting and BI |
| **Data mining** | pattern discovery | insights, prediction, decision support |

```text
Transactions → Database/DBMS → Data warehouse → Data mining/BI → Decisions
```

Thus, database stores operational data, warehouse organizes historical data, and mining extracts insights for better decisions.

Question 37

Differentiate TPS, MIS, DSS and ESS with a table.

Accepted Answer

### **TPS vs MIS vs DSS vs ESS**

| Basis | **TPS** | **MIS** | **DSS** | **ESS/EIS** |
|---|---|---|---|---|
| Main users | operational staff | middle managers | managers/analysts | top executives |
| Decision type | **structured** | structured | **semi-structured** | **unstructured** |
| Output | invoices, receipts | periodic summaries | models + what-if | dashboards/KPIs |
| Example | payroll, billing | sales report | pricing simulation | CEO dashboard |

This table clearly shows how IS types differ by level, output and decision support.

Question 38

Explain data security and backup in DBMS with a flowchart/table (basics).

Accepted Answer

### **Data Security and Backup in DBMS (Basics)**

Data security ensures only authorized users can access/modify data, and backup ensures recovery after failure.

| Control | Purpose |
|---|---|
| **Authentication** | verify user identity (password/MFA) |
| **Authorization** | role-based permissions |
| **Audit trail** | track changes (who changed what) |
| **Backup** | copies to prevent data loss |
| **Recovery** | restore database after crash |

```text
Access request → Authenticate → Authorize → Allow/Block
                  ↓
Regular backups → Failure/crash → Recovery → Normal operations
```

Hence, security + backup protect data and ensure continuity of MIS reporting.

Question 39

Explain e-payment methods and security controls with a flowchart (basics).

Accepted Answer

### **E-Payment Methods and Security Controls (Basics)**

**Common e-payment methods**:
- **Card payments** (debit/credit)
- **Net banking**
- **UPI/instant transfer**
- **Mobile wallets**

**Key security controls**:
- **Authentication** (password/biometric)
- **OTP / 2FA** for second-level verification
- **Encryption** and **HTTPS (SSL/TLS)** to protect data in transit
- fraud monitoring, transaction limits, alerts

```text
Customer selects product
   ↓
Choose payment method (Card/UPI/Netbanking/Wallet)
   ↓
Payment Gateway (encrypts + routes request)
   ↓
Bank/Network Authorization
   ↓
OTP/2FA Verification
   ↓
Success/Failure response
   ↓
Confirmation + Order processed
```

Thus, e-payment becomes safe and reliable when strong **authentication** and **encryption** controls are used along with monitoring.

Question 40

Explain major cyber threats and suitable controls with a table/flowchart (overview).

Accepted Answer

### **Cyber Threats and Controls (Overview)**

Cyber security is about understanding threats and applying the right controls to reduce risk.

| Threat | What happens | Suitable controls |
|---|---|---|
| **Malware/Ransomware** | files corrupted/encrypted | antivirus, patching, backups, least privilege |
| **Phishing** | users tricked to share OTP/password | awareness training, email filters, MFA |
| **Unauthorized access/hacking** | data theft/modification | strong passwords, MFA, RBAC, monitoring |
| **DoS/DDoS** | service becomes unavailable | rate limiting, DDoS protection, redundancy |

```text
Threat → Vulnerability exploited → Incident → Controls (Prevent/Detect/Correct) → Reduced impact
```

**Conclusion**: Using layered controls (people + process + technology) improves confidentiality, integrity and availability.

Management Information Systems — Question Paper

20 more questions to unlock