chapter 10

What are the defining features, advantages, and disadvantages of the e-business platform?

• Reduced operating costs, streamlined operations, quicker product delivery

• Increased operating costs, limited market reach, slower product delivery

• Limited market reach, higher financial costs, slower product delivery

• Increased operating costs, limited market reach, quicker product delivery

How does an ERP system provide better, more useful information for decision making in organizations?

• By increasing redundant processes, by automating existing processes, by maintaining the status quo

• By automating existing processes, by providing comprehensive information, by reducing operating costs

• By reducing operating costs, by providing comprehensive information, by streamlining operations

• By streamlining operations, by increasing redundant processes, by maintaining the status quo

What internal control issues arise when an organization ventures into e-business?

• Data encryption, segregation of duties, access restrictions

• Customer distrust, technology breakdowns, inaccurate data

• Inadequate education, poor project management, technical difficulties

• Automating redundant processes, unrealistic expectations, poor leadership

What is SSAE 16?

• A customer relationship management module, a financial management module, a data encryption technique

• An internal control standard, a data encryption technique, a customer authentication method

• An application service provider, a financial management module, a customer authentication method

• An internal control standard, a customer authentication method, a data encryption technique

Suggest three pieces of information an ERP system should capture in each module shown above.

• Account number, Employee ID, Vendor ID

• Vendor ID, inventory ID, Account number

• Customer ID, sales transaction ID, Employee ID

• Sales transaction ID, payroll transaction ID, inventory ID

What is the distinguishing characteristic of e-business that makes it different from traditional brick-and-mortar businesses?

• Potential for customer distrust

• Financial costs associated with setting up networks

• Need to develop different internal control systems

• REA modeling requirements

WebTrust and SysTrust are:

• Tools for providing security in an e-business environment

• Federal government programs

• Always part of an SSAE 16 audit

• Required for e-business

Which ERP module is most concerned with vendor relationships?

• Customer relationship management

• Human resource management

• Supply chain management

• Financial management

All of the following are conditions for a successful ERP implementation except:

• Thinking of the implementation as an IT project

• Obtaining organizational commitment

• Ensuring data accuracy

• Communicating strategic goals clearly

An application service provider provides HR services for the health care industry. It can be considered:

• A specialist, vertical market ASP

• An enterprise, specialist ASP

• A local, specialist ASP

• An enterprise, vertical market ASP