MIS 6713 MASTER EXAM BANK 200
QUESTIONS AND ANSWERS WITH DETAILED
RATIONALES 2026 UPDATED
MIS 6713 Midterm Exam (2026 Updated Version)
1. Moore’s Law is a fundamental observation in the technology
industry that primarily asserts which of the following
regarding computing performance?
A. The number of transistors on a microchip doubles every year while the
cost of computers is halved.
B. The computer chip performance per dollar doubles
approximately every 18 months to two years.
C. The speed of software development increases exponentially with every
new hardware release.
D. Internet bandwidth doubles every 24 months, leading to a global
reduction in telecommunication costs.
Rationale: Moore's Law specifically refers to the doubling of computing
power or chip performance per dollar roughly every two years, which
has historically driven down the cost of technology.
2. In the context of Information Systems, which of the
following best describes the "Second Order of Change" when
implementing a new technology?
A. A simple automation of tasks where only technical components like
hardware and software are modified.
B. A change that affects the People component, altering how
individuals perform processes and interact with technology.
C. A massive structural transformation that changes the entire reporting
and authority structure of the company.
D. A reduction in the number of IT staff required to maintain legacy
systems after a cloud migration.
Rationale: Second-order change, or "Informate," goes beyond basic
automation to change the human element—the way people work and
the skills they need.
3. Which managerial approach calls for a "process view" of
organizational activities, focusing on internal business
activities to achieve dramatic improvements?
,A. Business Process Reengineering (BPR)
B. Transaction Processing Systems (TPS)
C. Total Quality Management (TQM)
D. Enterprise Resource Planning (ERP)
Rationale: BPR is a radical redesign of business processes to achieve
significant improvements in critical measures of performance.
4. When a firm experiences a "vicious cycle" where it loses
users and consequently becomes less valuable to remaining
users, it is likely being penalized by:
A. Negative Moore's Law
B. Positive Feedback (Negative direction)
C. The Evangelist Effect
D. Disruption Theory
Rationale: Positive feedback creates a "winner-take-all" dynamic
where the strong get stronger and the weak get weaker; in this case, it
penalizes the smaller or losing firm.
5. Which of the following is considered a "Third Order of
Change" in an organization?
A. Implementing an automated email system to replace paper-based
memos.
B. Training employees to use a new CRM software to track customer
interactions.
C. Transitioning a traditional "brick-and-mortar" retail
business to a purely online, digital-only model.
D. Upgrading the internal server hardware to increase database
processing speed.
Rationale: Third-order change, or "Transform," involves the most
dramatic shift, affecting the organizational structure and the very
nature of the business.
6. The "Evangelist Effect" (or viral effect) in network dynamics
is best described as:
A. A phenomenon where current members of a network
spread the word to convince others to join, speeding up
adoption.
B. The technical requirement for a network to reach 1,000 users before it
becomes profitable.
C. A security vulnerability where a virus spreads through a network via
email contacts.
D. The process of a dominant firm buying out all smaller competitors in
,a niche market.
Rationale: The Evangelist Effect co-occurs with network effects but
specifically describes the human element of users recruiting others,
often motivated by personal or platform-provided incentives.
7. An Information System (IS) is generally considered a
"failure" if which of the following occurs?
A. The project goes 10% over the initial estimated budget.
B. The system requires more than two days of training for the average
user.
C. The system is either abandoned during development or
completed but rejected by its intended users.
D. The hardware components are leased rather than owned by the
organization.
Rationale: IS failure is defined by non-use or abandonment, meaning
the promised business benefits like efficiency or productivity are never
realized.
8. Which of the following roles is typically a "knowledge
worker" in charge of a specific functional area or team within
an organization?
A. Chief Information Officer (CIO)
B. Functional Manager
C. General Manager
D. System Analyst
Rationale: A Functional Manager oversees a specific department or
area (like Marketing or HR), whereas a General Manager oversees the
entire business unit.
9. In Information Systems planning, the step that focuses on
"where you want to go" is known as the:
A. Business Planning
B. Assessment
C. IS Vision
D. Strategic Initiatives
Rationale: The IS Vision defines the future state and goals for how
information systems will support the business.
10. Which type of system is expressly designed to support
individual and collective decision-making through analytical
models and data extraction?
A. Transaction Processing System (TPS)
, B. Decision Support System (DSS)
C. Executive Support System (ESS)
D. Office Information System (OIS)
Rationale: DSS uses data and models to help managers solve semi-
structured and unstructured problems.
11. Which of the following best describes the "Resource-Based
View" (RBV) of the firm in the context of achieving a
sustainable competitive advantage?
A. A firm must own the most expensive hardware and software in its
industry.
B. A firm must outsource all non-core functions to specialized third-
party vendors.
C. A firm must possess resources that are Valuable, Rare,
Inimitable, and Non-substitutable (VRIN).
D. A firm must hire the most employees to ensure it has the largest
market share.
Rationale: The RBV framework argues that for a resource (like an IS)
to provide a long-term advantage, it cannot be easily copied or
replaced by competitors.
12. In the "Three-Stage Model of Information Systems
Planning," which stage involves identifying specific projects
that align with the organization's strategic goals?
A. Strategic Planning
B. Resource Allocation
C. Project Identification
D. Systems Analysis
Rationale: Resource allocation is the stage where the organization
decides which specific IS projects will receive funding and personnel
based on their strategic value.
13. Which cloud computing model provides the highest level of
control for the client, allowing them to manage the operating
system and middleware?
A. Infrastructure as a Service (IaaS)
B. Platform as a Service (PaaS)
C. Software as a Service (SaaS)
D. Data as a Service (DaaS)
QUESTIONS AND ANSWERS WITH DETAILED
RATIONALES 2026 UPDATED
MIS 6713 Midterm Exam (2026 Updated Version)
1. Moore’s Law is a fundamental observation in the technology
industry that primarily asserts which of the following
regarding computing performance?
A. The number of transistors on a microchip doubles every year while the
cost of computers is halved.
B. The computer chip performance per dollar doubles
approximately every 18 months to two years.
C. The speed of software development increases exponentially with every
new hardware release.
D. Internet bandwidth doubles every 24 months, leading to a global
reduction in telecommunication costs.
Rationale: Moore's Law specifically refers to the doubling of computing
power or chip performance per dollar roughly every two years, which
has historically driven down the cost of technology.
2. In the context of Information Systems, which of the
following best describes the "Second Order of Change" when
implementing a new technology?
A. A simple automation of tasks where only technical components like
hardware and software are modified.
B. A change that affects the People component, altering how
individuals perform processes and interact with technology.
C. A massive structural transformation that changes the entire reporting
and authority structure of the company.
D. A reduction in the number of IT staff required to maintain legacy
systems after a cloud migration.
Rationale: Second-order change, or "Informate," goes beyond basic
automation to change the human element—the way people work and
the skills they need.
3. Which managerial approach calls for a "process view" of
organizational activities, focusing on internal business
activities to achieve dramatic improvements?
,A. Business Process Reengineering (BPR)
B. Transaction Processing Systems (TPS)
C. Total Quality Management (TQM)
D. Enterprise Resource Planning (ERP)
Rationale: BPR is a radical redesign of business processes to achieve
significant improvements in critical measures of performance.
4. When a firm experiences a "vicious cycle" where it loses
users and consequently becomes less valuable to remaining
users, it is likely being penalized by:
A. Negative Moore's Law
B. Positive Feedback (Negative direction)
C. The Evangelist Effect
D. Disruption Theory
Rationale: Positive feedback creates a "winner-take-all" dynamic
where the strong get stronger and the weak get weaker; in this case, it
penalizes the smaller or losing firm.
5. Which of the following is considered a "Third Order of
Change" in an organization?
A. Implementing an automated email system to replace paper-based
memos.
B. Training employees to use a new CRM software to track customer
interactions.
C. Transitioning a traditional "brick-and-mortar" retail
business to a purely online, digital-only model.
D. Upgrading the internal server hardware to increase database
processing speed.
Rationale: Third-order change, or "Transform," involves the most
dramatic shift, affecting the organizational structure and the very
nature of the business.
6. The "Evangelist Effect" (or viral effect) in network dynamics
is best described as:
A. A phenomenon where current members of a network
spread the word to convince others to join, speeding up
adoption.
B. The technical requirement for a network to reach 1,000 users before it
becomes profitable.
C. A security vulnerability where a virus spreads through a network via
email contacts.
D. The process of a dominant firm buying out all smaller competitors in
,a niche market.
Rationale: The Evangelist Effect co-occurs with network effects but
specifically describes the human element of users recruiting others,
often motivated by personal or platform-provided incentives.
7. An Information System (IS) is generally considered a
"failure" if which of the following occurs?
A. The project goes 10% over the initial estimated budget.
B. The system requires more than two days of training for the average
user.
C. The system is either abandoned during development or
completed but rejected by its intended users.
D. The hardware components are leased rather than owned by the
organization.
Rationale: IS failure is defined by non-use or abandonment, meaning
the promised business benefits like efficiency or productivity are never
realized.
8. Which of the following roles is typically a "knowledge
worker" in charge of a specific functional area or team within
an organization?
A. Chief Information Officer (CIO)
B. Functional Manager
C. General Manager
D. System Analyst
Rationale: A Functional Manager oversees a specific department or
area (like Marketing or HR), whereas a General Manager oversees the
entire business unit.
9. In Information Systems planning, the step that focuses on
"where you want to go" is known as the:
A. Business Planning
B. Assessment
C. IS Vision
D. Strategic Initiatives
Rationale: The IS Vision defines the future state and goals for how
information systems will support the business.
10. Which type of system is expressly designed to support
individual and collective decision-making through analytical
models and data extraction?
A. Transaction Processing System (TPS)
, B. Decision Support System (DSS)
C. Executive Support System (ESS)
D. Office Information System (OIS)
Rationale: DSS uses data and models to help managers solve semi-
structured and unstructured problems.
11. Which of the following best describes the "Resource-Based
View" (RBV) of the firm in the context of achieving a
sustainable competitive advantage?
A. A firm must own the most expensive hardware and software in its
industry.
B. A firm must outsource all non-core functions to specialized third-
party vendors.
C. A firm must possess resources that are Valuable, Rare,
Inimitable, and Non-substitutable (VRIN).
D. A firm must hire the most employees to ensure it has the largest
market share.
Rationale: The RBV framework argues that for a resource (like an IS)
to provide a long-term advantage, it cannot be easily copied or
replaced by competitors.
12. In the "Three-Stage Model of Information Systems
Planning," which stage involves identifying specific projects
that align with the organization's strategic goals?
A. Strategic Planning
B. Resource Allocation
C. Project Identification
D. Systems Analysis
Rationale: Resource allocation is the stage where the organization
decides which specific IS projects will receive funding and personnel
based on their strategic value.
13. Which cloud computing model provides the highest level of
control for the client, allowing them to manage the operating
system and middleware?
A. Infrastructure as a Service (IaaS)
B. Platform as a Service (PaaS)
C. Software as a Service (SaaS)
D. Data as a Service (DaaS)
