Chapter 15, ERP Systems and E-Commerce
True/False Questions
1. Enterprise resource planning (ERP) systems are groups of software applications integrated
to form enterprise information systems.
Ans: True
2. Activities in the sales showroom are typically considered front-office activities.
Ans: True
3. Enterprise resource planning (ERP) systems originated as front-office applications
designed for supply chain optimization, customer relationship management, and sales
force automation.
Ans: False
Response: ERP systems originated from back-office applications such as accounting and
human resources
4. Bolt-on applications are typically used for back-office functions such as accounting and
human resources.
Ans: False
Response: Bolt-on applications typically allow ERP systems to incorporate front-office
applications such as supply chain optimization, customer relationship management, and
sales force automation.
5. One condition that must be met to establish a database orientation is that data must be
stored only once, in a way that all authorized decision makers can access the data.
Ans: True
6. As long as a system includes a database, it automatically meets the database orientation
goal.
Ans: False
Response: Information may be stored at multiple levels of aggregation in multiple tables
in a database and would thereby violate the conditions needed to achieve the goal of
database orientation.
Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 1
,Chapter 15, ERP Systems and E-Commerce
7. A best of breed ERP system is more likely than a single source ERP system to completely
satisfy the criteria for a database orientation.
Ans: False
Response: Best of breed implementations are more likely than single source ERP
implementations to store the same data in multiple places.
8. Horror stories abound of ERP software implementations for which the business processes
did not match the software.
Ans: True
9. A semantic orientation in an enterprise system requires the use of an accounting module
that includes debits, credits, and accounts.
Ans: False
Response: A semantic orientation specifically precludes the use of artificial constructs
such as debits, credits, and accounts
10. Pattern-based system design facilitates automated reasoning by intelligent software
interfaces to the enterprise system.
Ans: True
11. Pattern-based system design facilitates integration of systems between enterprises.
Ans: True
12. Most ERP software-based systems are intentionally designed in conformance with the
REA pattern.
Ans: False
Response: ERP software-based systems do not seem to be intentionally built using any
particular pattern; instead they are built to support best practices at the task level.
13. ERP systems usually represent an attempt to accomplish inter-enterprise integration.
Ans: False
Response: ERP systems facilitate intra-enterprise integration.
2 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e
,Chapter 15, ERP Systems and E-Commerce
14. Best of breed enterprise system implementations install different ERP software
applications that best meet the needs of different areas of the enterprise.
Ans: True
15. Most E-commerce activity is B2C (business to consumer).
Ans: False
Response: Most E-Commerce activity is B2B (business to business).
16. Consideration of ERP systems and REA patterns for B2C electronic commerce is not
significantly different from B2C mail order or telephone order commerce.
Ans: True
17. In B2C electronic commerce, the primary differences enabled by electronic technology are
the breaking down of time, place, and form barriers.
Ans: True
18. Electronic data interchange (EDI) involves the exchange of data between enterprises in a
prescribed electronic format, usually through a value added network.
Ans: True
19. The REA enterprise ontology as introduced in this textbook is primarily externally
focused, because it links external agents to events, and is therefore an ideal solution for
integrated inter-enterprise systems.
Ans: False
Response: The REA enterprise ontology as introduced in this textbook is primarily
inward focused, intent on intra-enterprise integration. Strides are being made to extend the
REA ontology outward; however, those efforts are not described in detail in this textbook.
20. XBRL (extensible business reporting language) is a standard by which enterprises
exchange transaction level data, similar to electronic data interchange (EDI).
Ans: False
Response: XBRL is a tagging system tailored to financial statement line items. Such
information is aggregated, not transaction level detail.
Multiple Choice Questions
Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 3
, Chapter 15, ERP Systems and E-Commerce
21. Which of the following typically enables ERP systems to incorporate front-office
applications such as supply chain optimization, customer relationship management, and
sales force automation?
A) Bolt-on applications
B) Single-source ERP implementations
C) Best-of-breed ERP implementations
D) Legacy applications
E) None of the above
Ans: A
22. Which of the following is an example of a back-office activity or system?
A) A customer ordered merchandise from the enterprise's web site.
B) A purchasing agent placed an order with a supplier for equipment needed in the
manufacturing plant.
C) A receiving clerk at the loading dock unloaded boxes of raw materials from a
supplier's delivery truck.
D) A payroll clerk entered hours worked by each employee for last week into the
information system.
E) A vice president of finance met with a bank loan officer to discuss a proposed
financing agreement.
Ans: D
23. On which orientations do ERP systems and the REA enterprise ontology match exactly?
A) Database orientation
B) Semantic orientation
C) Structuring orientation
D) They match exactly on all three orientations
E) They do not match exactly on any of the three orientations
Ans: E
4 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e
True/False Questions
1. Enterprise resource planning (ERP) systems are groups of software applications integrated
to form enterprise information systems.
Ans: True
2. Activities in the sales showroom are typically considered front-office activities.
Ans: True
3. Enterprise resource planning (ERP) systems originated as front-office applications
designed for supply chain optimization, customer relationship management, and sales
force automation.
Ans: False
Response: ERP systems originated from back-office applications such as accounting and
human resources
4. Bolt-on applications are typically used for back-office functions such as accounting and
human resources.
Ans: False
Response: Bolt-on applications typically allow ERP systems to incorporate front-office
applications such as supply chain optimization, customer relationship management, and
sales force automation.
5. One condition that must be met to establish a database orientation is that data must be
stored only once, in a way that all authorized decision makers can access the data.
Ans: True
6. As long as a system includes a database, it automatically meets the database orientation
goal.
Ans: False
Response: Information may be stored at multiple levels of aggregation in multiple tables
in a database and would thereby violate the conditions needed to achieve the goal of
database orientation.
Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 1
,Chapter 15, ERP Systems and E-Commerce
7. A best of breed ERP system is more likely than a single source ERP system to completely
satisfy the criteria for a database orientation.
Ans: False
Response: Best of breed implementations are more likely than single source ERP
implementations to store the same data in multiple places.
8. Horror stories abound of ERP software implementations for which the business processes
did not match the software.
Ans: True
9. A semantic orientation in an enterprise system requires the use of an accounting module
that includes debits, credits, and accounts.
Ans: False
Response: A semantic orientation specifically precludes the use of artificial constructs
such as debits, credits, and accounts
10. Pattern-based system design facilitates automated reasoning by intelligent software
interfaces to the enterprise system.
Ans: True
11. Pattern-based system design facilitates integration of systems between enterprises.
Ans: True
12. Most ERP software-based systems are intentionally designed in conformance with the
REA pattern.
Ans: False
Response: ERP software-based systems do not seem to be intentionally built using any
particular pattern; instead they are built to support best practices at the task level.
13. ERP systems usually represent an attempt to accomplish inter-enterprise integration.
Ans: False
Response: ERP systems facilitate intra-enterprise integration.
2 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e
,Chapter 15, ERP Systems and E-Commerce
14. Best of breed enterprise system implementations install different ERP software
applications that best meet the needs of different areas of the enterprise.
Ans: True
15. Most E-commerce activity is B2C (business to consumer).
Ans: False
Response: Most E-Commerce activity is B2B (business to business).
16. Consideration of ERP systems and REA patterns for B2C electronic commerce is not
significantly different from B2C mail order or telephone order commerce.
Ans: True
17. In B2C electronic commerce, the primary differences enabled by electronic technology are
the breaking down of time, place, and form barriers.
Ans: True
18. Electronic data interchange (EDI) involves the exchange of data between enterprises in a
prescribed electronic format, usually through a value added network.
Ans: True
19. The REA enterprise ontology as introduced in this textbook is primarily externally
focused, because it links external agents to events, and is therefore an ideal solution for
integrated inter-enterprise systems.
Ans: False
Response: The REA enterprise ontology as introduced in this textbook is primarily
inward focused, intent on intra-enterprise integration. Strides are being made to extend the
REA ontology outward; however, those efforts are not described in detail in this textbook.
20. XBRL (extensible business reporting language) is a standard by which enterprises
exchange transaction level data, similar to electronic data interchange (EDI).
Ans: False
Response: XBRL is a tagging system tailored to financial statement line items. Such
information is aggregated, not transaction level detail.
Multiple Choice Questions
Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e 3
, Chapter 15, ERP Systems and E-Commerce
21. Which of the following typically enables ERP systems to incorporate front-office
applications such as supply chain optimization, customer relationship management, and
sales force automation?
A) Bolt-on applications
B) Single-source ERP implementations
C) Best-of-breed ERP implementations
D) Legacy applications
E) None of the above
Ans: A
22. Which of the following is an example of a back-office activity or system?
A) A customer ordered merchandise from the enterprise's web site.
B) A purchasing agent placed an order with a supplier for equipment needed in the
manufacturing plant.
C) A receiving clerk at the loading dock unloaded boxes of raw materials from a
supplier's delivery truck.
D) A payroll clerk entered hours worked by each employee for last week into the
information system.
E) A vice president of finance met with a bank loan officer to discuss a proposed
financing agreement.
Ans: D
23. On which orientations do ERP systems and the REA enterprise ontology match exactly?
A) Database orientation
B) Semantic orientation
C) Structuring orientation
D) They match exactly on all three orientations
E) They do not match exactly on any of the three orientations
Ans: E
4 Dunn/Cherrington/Hollander, Enterprise Information Systems: A Pattern Based Approach, 3e
