Chapter 1

Question 1

Enterprise

Answer 1

An organization established to achieve specific undertakings involving industrious, systematic activities.

Question 2

Information System

Answer 2

A network of communication channels used within an enterprise.

Question 3

Silo Operations

Answer 3

The division of enterprises into functional areas such that different activities occur in different parts of the enterprise.

Question 4

Silo Systems

Answer 4

Separate information systems for each of the different functional areas of an enterprise

Question 5

Integration

Answer 5

The combination of parts into a whole

Question 6

ERP Software

Answer 6

A group of commercial software applications integrated to form an enterprise-wide information system solution

Question 7

Best-of-breed

Answer 7

An approach to ERP software implementation in which an enterprise chooses different software packages for different areas of its business such that each package best suits the business area for which it is chosen.

Question 8

Reengineering

Answer 8

The redesign of business processes or systems to achieve a dramatic improvement in enterprise performance.

Question 9

What does paving the cowpaths mean?

Answer 9

It means automating existing processes as is, without considering whether they are the most efficient and effective means of achieving the goal.

Question 10

Business Process

Answer 10

A set of activities that compromise a transaction cycle such as the procure-to-pay (acquisition) process or the order-to-cash (revenue) process

Question 11

Which of the following statements about ERP systems is true?

Answer 11

Some ERP software packages are themselves combinations of separate applications for manufacturing, materials resource planning, general ledger, human resources, procurement, and order entry

Question 12

Which of the following is false with regard to an integrated enterprise information system?

Answer 12

Integration can be achieved in only one way

Question 13

Which of the following is used to solve the problem of silo departments?

Answer 13

Encouragement of interdepartmental interactions and reengineering of traditional departments and focus on workflow processes

Question 14

Which of the following often result from reengineering?

Answer 14

Streamlined workflow, reduced head count, consolidation of disparate information systems to eliminate duplication of efforts in various activities

Question 15

Geerts and McCarthy’s proposed expansion of the REA accounting model presumes that base objects in an enterprise information system should…

Answer 15

Reflect the underlying activities in which an enterprise engages.

Question 16

Which of the following is false about the REA ontology?

Answer 16

None of these are false: It attempts to eliminates silos, it is based on a set of building blocks, it can be used by all enterprises and by all functional areas within an enterprise, wherever two areas of an enterprise use the same building blocks as the foundation of their database design, their systems may be effectively integrated

Question 17

Most failed ERP software implementations have been blamed on…

Answer 17

People issues

Question 18

The redesign of business processes or systems to achieve a dramatic improvement in enterprise performance is called…

Answer 18

Reengineering

Question 19

Which of the following about the REA ontology is false?

Answer 19

The REA ontology encourages the use of artificial constructs, such as the many artificial constructs included in SAP systems

Question 20

REA stands for…

Answer 20

Resources, Events, and Applications

Question 21

What is sometimes used to solve the problem of silo departments?

Answer 21

Encouragement of interdepartmental interactions and re-engineering of traditional departments to instead focus on workflow processes

Question 22

Which statement is FALSE regarding the REA ontology?

Answer 22

REA does not help with the elimination of silos in enterprises