Question 1

‘GIGO’ in MIS stands for:

Accepted Answer

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

Question 2

In the context of data, what does ETL stand for?

Accepted Answer

b. Extract, Transform, Load

ETL is a process of extracting, transforming, and loading data into a data warehouse.

Question 3

Which of the following best describes 'IaaS'?

Accepted Answer

**IaaS** provides infrastructure resources (VMs, storage, networking) over the internet.

Question 4

G2C e-commerce mainly refers to:

Accepted Answer

**G2C** includes online government services like forms, certificates, bill payments, etc.

Question 5

Which MIS component is responsible for converting data into information for decision-making?

Accepted Answer

c. Software

Software processes and analyses data to generate meaningful information.

Question 6

Which control type detects problems after they happen?

Accepted Answer

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

Question 7

What is the main purpose of a Data Warehouse in MIS?

Accepted Answer

a. Storing historical data

Data Warehouses store historical data for analysis and reporting.

Question 8

Which of the following is a risk associated with AI systems in MIS?

Accepted Answer

If training data is biased, AI outputs can be **biased**, leading to unfair/wrong decisions.

Question 9

Which is a common challenge during ERP implementation?

Accepted Answer

ERP implementation requires process changes; **resistance** and training issues are common challenges.

Question 10

A key feature of DSS is:

Accepted Answer

DSS supports analytical decision making, including what-if, sensitivity and simulation analysis.

Question 11

What is the main function of a Geographic Information System (GIS) in MIS?

Accepted Answer

b. Analysing and visualising geographic data

GIS is used to work with geographic and spatial information.

Question 12

Which of the following is not a component of an MIS?

Accepted Answer

d. Employees

Employees are users of the MIS and not a component of the system itself.

Question 13

General IT controls (ITGC) are controls that:

Accepted Answer

**IT general controls** protect the overall IT environment like access administration, change control and disaster recovery.

Question 14

What is the primary function of a Management Information System (MIS)?

Accepted Answer

b. Decision support

MIS primarily serves as a tool to assist in decision-making by providing relevant information to managers.

Question 15

Which security measure adds an extra layer of verification in e-payments?

Accepted Answer

**OTP/2FA** verifies the user in addition to password/card details, reducing unauthorized transactions.

Question 16

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 17

A corrective control example is:

Accepted Answer

**Corrective controls** help fix and recover from issues (backup/restore, patching, rollback).

Question 18

Which of the following is a common ERP module?

Accepted Answer

ERP typically includes modules like **Finance**, **HR**, **Materials Management**, **Production**, and **Sales**.

Question 19

In the context of decision-making, what is the term for the process of comparing planned results to actual results?

Accepted Answer

a. Feedback

Feedback involves assessing actual results and comparing them to the intended outcomes.

Question 20

Which of the following is an example of an unstructured decision?

Accepted Answer

b. Selecting a new office location

Unstructured decisions are complex and lack a predefined process.

Question 21

What is meant by a common database in enterprise systems?

Accepted Answer

A **common database** means all departments use a shared data source, so information is consistent and updated in real time (single source of truth).

Question 22

Define e-business.

Accepted Answer

**E-business** means using internet and digital technologies to carry out and manage business processes (marketing, procurement, service, HR, etc.).

Question 23

Define IT governance.

Accepted Answer

**IT governance** is the system of leadership, policies and processes that ensures IT supports business objectives and risks are controlled.

Question 24

What is data quality?

Accepted Answer

**Data quality** means data is accurate, complete, timely and consistent for reliable MIS output.

Question 25

Write the full form of SaaS.

Accepted Answer

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

Question 26

Write any one benefit of cloud computing.

Accepted Answer

Benefit: **scalability**—resources can be increased or reduced quickly as per demand.

Question 27

What is data mining?

Accepted Answer

**Data mining** is the process of discovering useful patterns and insights from large datasets.

Question 28

Define database.

Accepted Answer

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

Question 29

What is a data breach?

Accepted Answer

A **data breach** is unauthorized access/exposure of sensitive data such as customer information or passwords.

Question 30

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 31

Explain the importance of networks in MIS (any three points).

Accepted Answer

Networks are important in MIS because they:
- enable **data sharing** between departments and branches in real time
- support centralized databases and faster access to reports
- improve **communication** (email, collaboration tools) and coordination
- help integrate systems like ERP across locations

Thus, networks improve speed, coordination and decision support in MIS.

Question 32

Differentiate between virus, worm, trojan and ransomware (any three differences).

Accepted Answer

Virus vs Worm vs Trojan vs Ransomware:
- **Virus**: attaches to a file/program and spreads when executed.
- **Worm**: self-replicates and spreads across networks automatically.
- **Trojan**: appears legitimate but performs hidden malicious actions (may open backdoor).
- **Ransomware**: encrypts/locks data and demands payment to restore access.

Hence, worms spread automatically, trojans hide inside apps, and ransomware extorts money by locking data.

Question 33

Explain benefits of e-commerce (any five).

Accepted Answer

Benefits of e-commerce (any five):
- **24×7 availability** and convenience for customers
- **wider market reach** (national/international customers)
- lower operating costs (less physical store dependency)
- faster ordering and payment process
- easy product **comparison** and better customer information
- data-driven marketing and personalization

Therefore, e-commerce improves convenience and expands business opportunities.

Question 34

Explain data mining and its applications (any three).

Accepted Answer

Data mining finds patterns/insights.

Applications (any three):
- **customer segmentation**
- **market basket analysis** (products bought together)
- **fraud detection**
- sales forecasting and churn prediction

It helps managers take data-driven decisions.

Question 35

Explain LAN and WAN (any three differences).

Accepted Answer

LAN vs WAN:
- **Coverage**: LAN = small area (office/building); WAN = large area (cities/countries).
- **Speed/Cost**: LAN is faster and cheaper; WAN is costlier and may be slower.
- **Ownership**: LAN is usually privately owned; WAN may use public telecom networks.

Thus, WAN connects multiple LANs over long distances.

Question 36

Differentiate between ERP, CRM and SCM with a comparison table and examples.

Accepted Answer

### **ERP vs CRM vs SCM (Comparison)**

| System | Focus | Covers | Example |
|---|---|---|---|
| **ERP** | internal integration | finance, HR, inventory, production, sales | integrated accounting + inventory |
| **CRM** | customer relationship | leads, marketing, customer service | ticketing + sales pipeline |
| **SCM** | supply chain flow | suppliers, procurement, logistics, delivery | vendor + logistics tracking |

**Conclusion**: ERP connects internal departments, CRM manages customer lifecycle, and SCM optimizes supplier-to-customer flow.

Question 37

Explain benefits and limitations of e-commerce in exam-writing style with a table.

Accepted Answer

### **Benefits and Limitations of E-Commerce**

E-commerce offers convenience and wider reach, but it also creates security and operational challenges.

| **Benefits** | **Limitations/Challenges** |
|---|---|
| **24×7 availability** and convenience | **security risks** (fraud, phishing, hacking) |
| wider market reach | privacy and data misuse concerns |
| lower operating costs | delivery/returns and logistics issues |
| faster ordering and payment | tech dependence (internet, downtime) |
| data-driven marketing and personalization | trust issues; no physical inspection |

**Conclusion**: If security controls and logistics management are strong, e-commerce can deliver significant value to both customers and businesses.

Question 38

Describe the SDLC phases with a neat flowchart and brief explanation.

Accepted Answer

### **SDLC Phases**

**SDLC** provides a structured path to develop an information system from idea to operation.

```text
Problem/Need
   ↓
Preliminary Investigation
   ↓
Feasibility Study (TELOS)
   ↓
System Analysis (Requirements/SRS)
   ↓
System Design (Logical + Physical)
   ↓
Development/Implementation
   ↓
Testing (Unit → Integration → System → UAT)
   ↓
Deployment/Conversion
   ↓
Maintenance (Corrective/Adaptive/Perfective/Preventive)
```

**Brief explanation**:
- Investigation and feasibility decide whether the project should start.
- Analysis and design ensure the system matches user needs and has proper controls.
- Implementation and testing build a working system and remove defects.
- Deployment makes it live, and maintenance keeps it updated and reliable.

Question 39

Explain how ERP integrates business processes using a flowchart (order-to-cash example).

Accepted Answer

### **ERP Integration (Order-to-Cash Example)**

ERP integrates departments using a **common database**, so one transaction updates multiple functions automatically.

```text
Customer Order (Sales)
   ↓
Inventory Check (Stores)
   ↓
Production/Procurement if needed (Operations/Purchase)
   ↓
Delivery / Dispatch (Logistics)
   ↓
Invoice Generation (Finance)
   ↓
Payment Receipt (Accounts)
   ↓
Updated Reports (Management Dashboard)
```

**Exam points**:
- same data is shared across modules (no re-entry)
- improves speed, accuracy and coordination
- management gets real-time reports for control

Thus, ERP enables end-to-end process integration and faster decision making.

Question 40

Explain big data and business analytics with a flowchart showing how they support decisions.

Accepted Answer

### **Big Data + Analytics for Decision Making**

**Big data** provides large, diverse datasets. **Business analytics** converts that data into insights for decisions.

```text
Data sources (sales, web, sensors)
   ↓
Big data storage/processing (cloud/data lake)
   ↓
Analytics (descriptive → diagnostic → predictive → prescriptive)
   ↓
Dashboards/Insights
   ↓
Management decisions
   ↓
Feedback & monitoring
```

**Exam-style points**:
- big data increases data availability (volume/variety/velocity)
- analytics finds patterns and predicts outcomes
- decisions become faster and evidence-based

Thus, big data + analytics strengthens MIS by improving planning, control and forecasting.

Management Information Systems — Question Paper

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