ISTM 210 EXAM 3 (2026/2027) | STUDY SET WITH VERIFIED SOLUTIONS
ISTM 210: Business Information Systems - Examination 3 | Core Domains: Database Management
Systems & SQL, Systems Analysis & Design Methodologies, IT Project Management Fundamentals,
Enterprise Systems (ERP, CRM), Business Intelligence & Data Analytics, Information Security & Risk
Management, E-Commerce & Digital Business Models, and Ethical & Global Issues in IS | Business
Information Systems Course Focus | Comprehensive Course Exam Format
Exam Structure
The ISTM 210 Exam 3 for the 2026/2027 academic cycle is a 80-question, multiple-choice question
(MCQ) and applied problem-solving examination.
Introduction
This ISTM 210 Exam 3 study set for the 2026/2027 cycle prepares students for the comprehensive
assessment of advanced business information systems topics. The content evaluates understanding of
database design, systems development life cycles, project management, enterprise software, data-driven
decision support, and the strategic management of information technology in organizational contexts.
Answer Format
All correct answers and technical solutions must be presented in bold and green, followed by detailed
rationales that explain database normalization concepts, write and interpret basic SQL queries, apply
systems analysis and design tools (e.g., DFDs, UML), outline project management phases, and analyze
business cases for IT solutions.
Questions (80 Total)
1. In a relational database, what ensures that each row in a table is unique?
A. Foreign key
B. Primary key
C. Composite key
D. Index
Rationale: A primary key is a column (or set of columns) that uniquely identifies each record in a
table. It enforces entity integrity and cannot contain NULL values. A foreign key links to a primary key
in another table; a composite key uses multiple columns as a primary key; an index improves query
performance but does not guarantee uniqueness.
2. Which SQL command retrieves data from a database?
A. INSERT
B. UPDATE
C. SELECT
,D. DELETE
Rationale: The SELECT statement is used to query and retrieve data from one or more tables. INSERT
adds new records, UPDATE modifies existing records, and DELETE removes records. SELECT is the
most common command in data analytics and reporting.
3. What is the purpose of normalization in database design?
A. To increase data redundancy
B. To reduce data redundancy and improve data integrity
C. To speed up all database operations
D. To combine all tables into one
Rationale: Normalization organizes data to minimize duplication and dependency. It involves
dividing large tables into smaller, related ones and defining relationships via keys. This reduces
anomalies during insert, update, and delete operations, enhancing accuracy and efficiency.
4. Which phase of the Systems Development Life Cycle (SDLC) involves gathering user requirements?
A. Implementation
B. Analysis
C. Design
D. Maintenance
Rationale: The Analysis phase focuses on understanding business needs and collecting detailed
functional and non-functional requirements from stakeholders. This forms the foundation for system
design. Design translates requirements into technical specifications; Implementation builds and deploys
the system.
5. A Data Flow Diagram (DFD) is used to:
A. Show database table relationships
B. Model how data moves through a system
C. Define programming syntax
D. Encrypt sensitive information
Rationale: A DFD is a graphical tool in structured analysis that illustrates processes, data stores,
external entities, and data flows. It helps visualize how data is input, processed, stored, and
output—without specifying implementation details.
, 6. Which project management methodology emphasizes iterative development and customer
collaboration?
A. Waterfall
B. Agile
C. Six Sigma
D. Critical Path Method (CPM)
Rationale: Agile (e.g., Scrum, Kanban) delivers work in small, incremental cycles (sprints), welcomes
changing requirements, and prioritizes face-to-face communication and customer feedback. Waterfall is
linear and sequential; Six Sigma focuses on quality improvement; CPM schedules tasks based on
dependencies.
7. SAP and Oracle are examples of:
A. Customer Relationship Management (CRM) systems
B. Enterprise Resource Planning (ERP) systems
C. Business Intelligence (BI) tools
D. E-commerce platforms
Rationale: ERP systems like SAP and Oracle integrate core business functions (finance, HR, supply
chain, manufacturing) into a unified platform. CRM systems (e.g., Salesforce) focus on sales and
customer service; BI tools (e.g., Tableau) analyze data; e-commerce platforms (e.g., Shopify) facilitate
online sales.
8. A data warehouse is designed to:
A. Process real-time transactions
B. Support historical analysis and decision-making
C. Replace operational databases
D. Store unstructured social media data only
Rationale: A data warehouse is a centralized repository of integrated, historical data from multiple
sources, optimized for querying and analysis (OLAP). Operational databases handle real-time
transactions (OLTP); data lakes store raw, unstructured data.
9. Which security principle ensures that only authorized users can access data?
A. Integrity
B. Confidentiality
ISTM 210: Business Information Systems - Examination 3 | Core Domains: Database Management
Systems & SQL, Systems Analysis & Design Methodologies, IT Project Management Fundamentals,
Enterprise Systems (ERP, CRM), Business Intelligence & Data Analytics, Information Security & Risk
Management, E-Commerce & Digital Business Models, and Ethical & Global Issues in IS | Business
Information Systems Course Focus | Comprehensive Course Exam Format
Exam Structure
The ISTM 210 Exam 3 for the 2026/2027 academic cycle is a 80-question, multiple-choice question
(MCQ) and applied problem-solving examination.
Introduction
This ISTM 210 Exam 3 study set for the 2026/2027 cycle prepares students for the comprehensive
assessment of advanced business information systems topics. The content evaluates understanding of
database design, systems development life cycles, project management, enterprise software, data-driven
decision support, and the strategic management of information technology in organizational contexts.
Answer Format
All correct answers and technical solutions must be presented in bold and green, followed by detailed
rationales that explain database normalization concepts, write and interpret basic SQL queries, apply
systems analysis and design tools (e.g., DFDs, UML), outline project management phases, and analyze
business cases for IT solutions.
Questions (80 Total)
1. In a relational database, what ensures that each row in a table is unique?
A. Foreign key
B. Primary key
C. Composite key
D. Index
Rationale: A primary key is a column (or set of columns) that uniquely identifies each record in a
table. It enforces entity integrity and cannot contain NULL values. A foreign key links to a primary key
in another table; a composite key uses multiple columns as a primary key; an index improves query
performance but does not guarantee uniqueness.
2. Which SQL command retrieves data from a database?
A. INSERT
B. UPDATE
C. SELECT
,D. DELETE
Rationale: The SELECT statement is used to query and retrieve data from one or more tables. INSERT
adds new records, UPDATE modifies existing records, and DELETE removes records. SELECT is the
most common command in data analytics and reporting.
3. What is the purpose of normalization in database design?
A. To increase data redundancy
B. To reduce data redundancy and improve data integrity
C. To speed up all database operations
D. To combine all tables into one
Rationale: Normalization organizes data to minimize duplication and dependency. It involves
dividing large tables into smaller, related ones and defining relationships via keys. This reduces
anomalies during insert, update, and delete operations, enhancing accuracy and efficiency.
4. Which phase of the Systems Development Life Cycle (SDLC) involves gathering user requirements?
A. Implementation
B. Analysis
C. Design
D. Maintenance
Rationale: The Analysis phase focuses on understanding business needs and collecting detailed
functional and non-functional requirements from stakeholders. This forms the foundation for system
design. Design translates requirements into technical specifications; Implementation builds and deploys
the system.
5. A Data Flow Diagram (DFD) is used to:
A. Show database table relationships
B. Model how data moves through a system
C. Define programming syntax
D. Encrypt sensitive information
Rationale: A DFD is a graphical tool in structured analysis that illustrates processes, data stores,
external entities, and data flows. It helps visualize how data is input, processed, stored, and
output—without specifying implementation details.
, 6. Which project management methodology emphasizes iterative development and customer
collaboration?
A. Waterfall
B. Agile
C. Six Sigma
D. Critical Path Method (CPM)
Rationale: Agile (e.g., Scrum, Kanban) delivers work in small, incremental cycles (sprints), welcomes
changing requirements, and prioritizes face-to-face communication and customer feedback. Waterfall is
linear and sequential; Six Sigma focuses on quality improvement; CPM schedules tasks based on
dependencies.
7. SAP and Oracle are examples of:
A. Customer Relationship Management (CRM) systems
B. Enterprise Resource Planning (ERP) systems
C. Business Intelligence (BI) tools
D. E-commerce platforms
Rationale: ERP systems like SAP and Oracle integrate core business functions (finance, HR, supply
chain, manufacturing) into a unified platform. CRM systems (e.g., Salesforce) focus on sales and
customer service; BI tools (e.g., Tableau) analyze data; e-commerce platforms (e.g., Shopify) facilitate
online sales.
8. A data warehouse is designed to:
A. Process real-time transactions
B. Support historical analysis and decision-making
C. Replace operational databases
D. Store unstructured social media data only
Rationale: A data warehouse is a centralized repository of integrated, historical data from multiple
sources, optimized for querying and analysis (OLAP). Operational databases handle real-time
transactions (OLTP); data lakes store raw, unstructured data.
9. Which security principle ensures that only authorized users can access data?
A. Integrity
B. Confidentiality
