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MODERN BUSINESS.doc
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Test Questions

1.

Lewis Locksmiths Ltd has just bought a new computer. Mr. Lewis would like to set up his accounts and financial information on computer. What type of software would be best for this?

A.

A database

B.

A wordprocessor

C.

A graphics package

D.

A spreadsheet

2.

The main purpose of the Data Protection Act is to:

A.

Protect firms by ensuring that they have password protection on all computers

B.

Protect the government by ensuring that people cannot have access to secret defence or police information

C.

Protect individuals by ensuring that organisations holding information about them on computer are required to register this fact and to comply with certain regulations

D.

Safeguard information sent on computer disk through the post

3.

A dedicated computer system is one which:

A.

Rarely breaks down

B.

Can only run one type of software application

C.

Can run a variety of different software applications to suit the needs of the user

D.

Meets the requirements of the Data Protection Act

4.

Introduction of a new computerised information processing system could be judged to be effective on all of the following criteria except:

A.

Increased speed of information processing

B.

Lower administrative costs

C.

Increased paperwork

D.

Improved information flows for decision-making

5.

The main difference between a spreadsheet and a database is:

A.

A database is not used for handling data

B.

A database is used for making calculations

C.

A spreadsheet is used for asking ‘What if’ questions

D.

A spreadsheet is mainly used for organising and categorising data

6.

All of the following are major purposes of information processing systems except:

A.

Receiving information

B.

Distributing and communicating information

C.

Storing information

D.

Making decisions based on Information

Questions 7 – 9 share the following answer options:

A.

Receiving information

B.

Storing information

C.

Using information

D.

Communicating information

Which of the above purposes of an information processing system do the following situations describe?

7.

A telephone call from a angry customer

8.

Sending out product details via electronic mail

9.

Calculating monthly average sales figures to identify the trend

10.

Answer the following questions:

  • Explain the key difference between information processing and Information Technology

  • What are the differences between computer hardware and software?

  • Suggest five kinds of software application typically used in business to process information.

  • What is an ‘open computer system’ and why would it be welcomed by business?

11.

The Department of the Environment (DoE) is to move to new offices. The existing library within the Department holds many reference books, newspapers, magazines, and maps. Some information is stored on microfiche slides. Every day the library receives information on new publications, requests from DoE personnel searching for particular items of information or books, and sends out photocopies, items on loan, and loan expiry reminders. Much of the processing of this information is undertaken by hand, and people who request information from the library often complain it is too slow. The library is currently researching its information processing requirements and has suggested introducing an electronic environment in which as much information as possible is stored on disk which can be accessed by users over a wide area network.

  • What are the main purposes of an information processing system like that in the DoE library?

  • Explain the possible advantages to the DoE library of an electronic environment.

  • Suggest a number of criteria the DoE library could use to evaluate the proposed system against their existing system.

12.

Explain the following terms and how each one might help a business:

  • Computer-aided design

  • Database

  • Spreadsheet

  • Multimedia

  • Electronic Data Interchange

  • Computer hardware

13.

What are the main implications of the Data Protection Act for a new business?

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