Semester One Final Examinations, 2016

MGTS1201 Transforming Business with Information Systems

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School of Business
EXAMINATION
Semester One Final Examinations, 2016

MGTS1201 Transforming Business with Information Systems

This paper is for St Lucia Campus students.
Examination Duration:

120 minutes

Reading Time:

10 minutes

Exam Conditions:

ForExaminerUseOnly
Question

Mark

This is a Central Examination

This is a Closed Book Examination - specified materials permitted

During perusal - write only on the rough paper provided

This examination paper will NOT be released to the Library

Materials Permitted In The Exam Venue:

(No electronic aids are permitted e.g. laptops, phones)

Any unmarked paper dictionary is permitted

Calculators - No calculators permitted

Materials To Be Supplied To Students:

1 x Multiple Choice Answer Sheet

Rough Paper

Instructions To Students:

Answer all questions. Answer multiple choice questions on MCQ answer

sheet. Answer short answer questions on the space provided within the
examination paper.

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Semester One Final Examinations, 2016

MGTS1201 Transforming Business with Information Systems

PART A - Total Marks: 15

Answer all of the following 30 multiple choice questions on the answer sheet
provided. All questions in this section have the same mark (0.5 marks for each
question and correct answer).
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
1. The last four stages (of six in total) of the system development life cycle (SDLC) are:
a) investigation, analysis, implementation, testing
b) analysis, design, testing, implementation
c) operation, testing, implementation, maintenance
d) design, testing, implementation, maintenance
2. Which of the following statements most accurately the level of user involvement
during the systems development life cycle (SDLS)?
a) users are consistently involved during all SDLC stages
b) users have higher involvement in the early and later stages of the SDLC
c) users have higher involvement during the middle stages of the SDLC
d) users have lower involvement during the early and later stages of the SDLC
3. The disadvantages of the systems development life cycle include:
a) encourages inadequate problem analysis
b) not practical with large number of users
c) may only produce part of the final system
d) may produce excessive documentation
4. Within the context of e-business and e-commerce, the term clearing house refers to:
a) a central, virtual market space on the Web where products may be exchanged
b) a central component of the electronic payment card processing cycle that
facilitates communication between the merchant and issuing bank
c) the entity within the electronic payment card cycle that verifies the customers
credit card information
d) the entity within the electronic payment card cycle that sends funds in the
amount of the purchase to the merchants bank
6. E-commerce limitations include which of the following:
a) the lack of universally accepted security standards
b) insufficient telecommunications bandwidth in less-developed countries
c) the perception that e-commerce is insecure
d) all of the above
7. An electronic storefront is a website that:
a) represents a single, purely virtual store or business
b) represents any single, physical store or business
c) represents a manufacturer or retailer
d) all of the above

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MGTS1201 Transforming Business with Information Systems

8. Which of the following applies to the Linux software licence?

a) no company can sell a licence to use Linux
b) the Linux licence is owned by the open-source community
c) Linux has no licence fee
d) all of the above
9. Which of the following is not a characteristic of a transaction processing system?
a) small amounts of data are processed
b) sources of data are mainly internal
c) low computation complexity
d) high level of accuracy, data integrity, and security
10. Distribution or dispersal takes place in which segment of the supply chain?
a) upstream
b) internal
c) downstream
d) external
11. Returned products, recycled products, and disposal of materials or products are
called:
a) reverse flows
b) returns
c) material flows
d) information flows
12. The Insert function enables the Excel user to:
a) Choose a function from all available.
b) Guides you in building the formula.
c) Gives you help in understanding the function.
d) All of the above
13. The formula =SUM(SUM(A1,B2),SUM(B2,C3)) where A1=25, B2=5, and C3=3.15
returns?
a) Syntax error formula not constructed legally
b) Name error name not recognized
c) 33.15
d) 38.15
14. The function =(18/(3+3)+3)*2 returns:
a) 12
b) 24
c) 18
d) 15

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MGTS1201 Transforming Business with Information Systems

15. How are dates represented in Excel?

a) As a text string, e.g., 1st May 2013
b) As the number of days in any calendar year since 1st January 2013
c) As the number of days elapsed since January 1st 2000
d) As the number of days elapsed since January 1st 1900
16. In Excel, the term format is best described as:
a) the colour(s) used within the cell
b) the table style chosen for the worksheet
c) the type of data in the cell and how we want to view it
d) all of the above

17. By default, the format of a cell in Excel is:

a) the General format
b) the Number format
c) the Excel Basic format
d) the Excel Generic format
18. Which of the following statements best describes the type and order of arguments to
the DSUM function?
a) a range of numerical data, a condition, a filter range of cells
b) a data list, a condition, a filter range of cells
c) a filter range of cells, a data list range, a column
d) a data list range, a column label or position number, a filter range of cells
19. What would appear as a result of the formula =IF(C5>30,C5*3,"Yes") if the cell
C5=30?
a) 30
b) 90
c) 40
d) Yes
20. How many IF functions (i.e. notincluding operators) in: =IF(A1>=85, HD,
IF(A1>=75, D, IF(A1>=65, CR, IF(A1>=50, P, F))))
a) 1
b) 2
c) 3
d) 4
21. Which of the following cannot be included in a range name?
a) Letters
b) Numbers
c) Underscores
d) Spaces

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MGTS1201 Transforming Business with Information Systems

22. The IF function syntax is usually described by:

a) =IF(logical_test; value_if_true; value_if_false)
b) =IF(logical_test, value_if_true, value_if_false)
c) =IF(logical_test value_if_true value_if_false)
d) All of the above.
23. The formula =AVERAGE(A1:A4) with A1=TRUE, A2=0, A3=Peter, and A4=12
returns?
a) 6
b) 4
c) 3
d) Error value
24. The Excel error message #DIV/0! is produced when:
a) We are trying to multiply text by a zero
b) We are trying to divide text by a zero
c) We are trying to divide a number by a zero
d) All of the above
25. In the assignment, the calculation of DAVERAGE was complicated by:
a) The possible return of zero records after filtering
b) The possible division of a zero dollar amount by zero
c) The possible description of a filtering condition which would produce no records
d) All of the above
26. The VLOOKUP arguments are best described as:
a) Four arguments with the 1st argument possibly a default value
b) Four arguments with the 2nd argument possibly a default value
c) Four arguments with the 4th argument possibly a default value
d) Four arguments with the 3rd argument possibly a default value
27. What is the false argument of the first IF function in the formula: =IF(A1>=85,
HD, IF(A1>=75, D, IF(A1>=65, CR, IF(A1>=50, P, F))))
a) IF(A1>=50, P, F)
b) IF(A1>=65, CR, IF(A1>=50, P, F))
c) HD
d) IF(A1>=75, D, IF(A1>=65, CR, IF(A1>=50, P, F)))
28. When using DAVERAGE in the advanced filtering of the assignment, the specific
problem we needed to manage was:
a) An unsuccessful search would mean division by zero in calculating an
average
b) An unsuccessful search would mean no data in the target cell
c) An unsuccessful search would distort the result of DSUM
d) All of the above

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MGTS1201 Transforming Business with Information Systems

29. Using VLOOKUP containing TRUE for the 4th argument and with a lookup list not
sorted in ascending order will produce:
a) Unpredictable results possibly correct, possibly incorrect
b) An error message #N/A
c) No error message but always an incorrect result
d) A syntax error when we enter the actual VLOOKUP formula
30. How would we verify the accuracy of all named ranges in our workbook and delete
the redundant entries?
e) We would use Name Manager
f) We would use Conditional Formatting
g) We would use Advanced Filtering
h) Any of the above

Part B of examination continues next page

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Semester One Final Examinations, 2016

MGTS1201 Transforming Business with Information Systems

PART B - Total Marks: 45

This section contains 3 short answer questions worth of 45 marks in total. Answer all
questions in the spaces provided on the exam paper only.
Question 1:

Acquiring information systems and applications (Total 15 marks)

a) The benefits and costs of IT projects must always be evaluated. Name and concisely
explain three widely accepted methods for conducting cost-benefit analysis.
(Part a - 6 marks)
1st method (2 marks):
Netpresentvalue(NPV)[1mark]convertfuturevaluesofbenefitstotheirpresent
valueviadiscountingthem(i.e.,aninterestratethatreflectsthecostoffunds)[1mark]
Returnoninvestment(ROI)[1mark]measuredbydividingthenetincomegenerated
bytheprojectbytheaverageassetsinvestedintheproject[1mark]
Breakevenanalysis[1mark]determinesthepointatwhichthecumulativevalueofthe
benefitsfromaprojectequalstheinvestmentmadeintheproject[1mark]
Businesscaseapproach[1mark]developingabusinesscaseinwhichisdescribedhow
theproposedsystemwouldimprovethecurrentworkpractices[1mark]
Any three of the above four
2nd method (2 marks):

3rd method (2 marks):

Continuednextpage

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Semester One Final Examinations, 2016

MGTS1201 Transforming Business with Information Systems

b) Software as a Service (SaaS) is a strategy that is available to modern businesses.

Concisely describe what SaaS is. Within the context of SaaS, who owns the software,
who hosts the software, how is the software accessed, and why the strategy is popular
within the business user community.
(Part b - 3 marks)
Software as a Service what is it? (1 mark):
Astrategybywhichbusinesscanacquiresoftwareapplications(1mark)

Who owns the software, who hosts the software, how is the software accessed, why is it
popular (2 marks):
Thevendorownsthesoftware(0.5marks);thevendorhoststhesoftware(0.5marks)
thesoftwareisaccessedviaanetworkusuallytheInternet(0.5marks).Itispopular
becausecustomerssavetheexpenseofbuying,operatingandmaintainingthesoftware
(0.5marks)

c) The systems design stage is a fundamental stage of the systems development life cycle
(SDLC). Concisely describe what the goal of the system design stage is. What is the
principal deliverable of the system design stage? What is scope creep and how is this
controlled with respect to the principal deliverable of the system design stage?
(Part c - 4 marks)
What is goal of the system design stage? (1 mark):
Thegoalistodescribehowthesystemwillresolvethebusinessproblem
What is the principal deliverable of the system design stage? (1 mark):
Thetechnicalsystemspecifications(systemspecification)
What is scope creep? (1 mark) Scope creep is adding requirements/functions to the
system specification

How is scope creep controlled with respect to the principal deliverable of design stage (1
mark)
The system specifications after approval by all stake holders are frozen

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MGTS1201 Transforming Business with Information Systems

d) The torturous implementation of Queensland Healths payroll system will almost

certainly be remembered as one of the most disastrous IT projects in our countrys
history. What was the major problem with the old/existing LATTICE payroll system
that resulted in the decision to escalate the implementation of the new system? What
was the relevant software system implementation project that should have been
relevant to the scoping and project management of Healths payroll system?
(Part c - 2 marks)
Major problem with old LATTICE system? (1 mark):
Thesupplierwasintendingtoendsupportfortheoldsoftwaresystem

What was the relevant software system implementation project? (1 mark):

AsimilarMaterHospitalprojecttook12monthstoscopeandthreeyearstorollout
andthisprojectfinishedontime/budget

Continuednextpage

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Semester One Final Examinations, 2016

Question 2:

MGTS1201 Transforming Business with Information Systems

BPM and BPMN

(Total 15 marks)

ThefollowingseriesofquestionsallfocusuponBusinessProcessManagementand
BPMN.

a) Explain concisely and clearly the relationship between BPM and BPMN? Your
answer should describe what each of these concepts is, and also how they are
connected.
(Part a - 3 marks)
Answer(1):BPMisBusinessProcessManagementanditistheanalysisand
understandingofhowbusinessprocessesworkwithaviewtoincreasingthe
efficiencyoftheseprocesses.(1mark)BPMNisthesetofgraphicalnotations
(constructs)andtheirassociatedusageprotocols(1mark)thatfacilitatethe
visualization/representationlogicallyoftheseanalysestovariousdegreesof
abstraction.(1mark)

b) What is meant by the term scope in the area of BPM? Why is scope important
within a BPM project?
(Part b - 2 marks)
Answer(2):whatisscope:
Scopemeansaboundarythatis,decidingtheboundaryofaparticularprocessor
groupofprocesses(1mark).

Answer(2):whyisscopeimportant:
Businessprocessesare(usually)complexandcanalsobefuzzy(i.e.imprecisein
definition).Thereforeitiscriticalfortheanalysttodefinethescopefirstlywithinany
BPMprojectsothattheanalysiscanproceedwithmaximumclarityastowhatis
beinginvestigatedandwho(i.e.thepeople/resources)isinvolved.(1mark)

Continuednextpage

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MGTS1201 Transforming Business with Information Systems

c) The BPMN symbol set includes notations for Start, End (i.e. events), Process
Flow and Message Flow. Describe three other notations within the BPMN
symbol set (you should name them as per BPMN and describe what each
notation means).
(Part c - 3 marks)
Answer(3)(3marks)

Theseareoutlinedoninthelectureslides

d) What is meant by the term functional system/process? What are two

problems associated with isolated functional systems?
(Part d - 2 marks)
Answer(4):functionalsystem/process:
Afunctionalsystemorprocessisonewhichoperatesentirelywithinonefunctional
area(i.e.adepartment,group,orsection)ofabusinesspage204settext.(1mark)
Answer(2):twoproblemswithisolatedfunctionalsystems:
Thereareseveralseriousproblems:(1)dataduplicationleadstodatainconsistency,
(2)disjointedprocessesmeansthatthereisnouniversal/enterpriseviewofthe
business,(3)decisionmakingcannottrulybeintegratedacrosstheenterprisei.e.
eachdepartmentdoesitsownthing,and(4)increasedexpensethroughduplication
ofresourcesandaninabilitytodesignbusinessprocessespurelyforefficiency.(0.5
marksforeachcorrectanswermaximumof1mark)

Continuednextpage

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MGTS1201 Transforming Business with Information Systems

e) The owner/manager (Murray) of a financial planning business has conducted

BPM and subsequently he has approved the following processing redesign
(where all the following activities are assessed as simple activities):
The Financial Information has already been received by Murrays business and
this information is the input to the next series of processes. Murray decides he
can then have both of the next two activities done in any order. The next two
activities involve reviewing the prospective clients financial information (i.e. the
document provided as input) and to also identify possible investment directions
for the prospective client. If the review of the prospective clients information
reveals gaps in the information, Murray will telephone the client to fill in the
gaps in the documentation. Following all of these activities, Murray will
complete a final analysis of all the available data on the prospective client. As a
result of this final analysis, Murray will issue a written advice to the client and
this document details the suggested financial strategy that will be pursued.
You are required to draw (using all appropriate BPMN notations) the logical
description of the above Assess Client process. You should show all start/stop
events, all control flows, resource names, branching/merging points, data objects
coming into/out of the process (Assess Client).
(Part e - 5 marks)

ANSWER:

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Semester One Final Examinations, 2016

Question 3:

MGTS1201 Transforming Business with Information Systems

Excel.

(Total 15 marks)

An Excel formula has been produced to calculate employee tax payable according to the
following tax scale:

i.
ii.
iii.

Salary from $0 to $10,000: Tax is 10% of salary.

Salary above $10,000 but not greater than $20,000: Tax is $1000 plus 15% of
amount over $10,000.
Salary above $20,000: Tax is $2500 plus 20% of amount over $20,000.

In the workbook shown below, an Excel formula has been written in cell B3 to calculate
the tax payable on gross income appearing in cell B2. The Excel formula is:

=IF(AND(B2>=0,B2<=10000),B2*10%,IF(AND(B2>10000,B2<=20000),1000+(B210000)*15%,2500+(B2-20000)*20%))

1
2

Gross Income

Tax Payable

You are now asked to answer the following questions from your staff. Please write your
answers in the appropriate space below.

a) How many IF functions are contained in the bolded formula above?

(1 mark)
_____2____________

Continuednextpage

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MGTS1201 Transforming Business with Information Systems

b) What is the FALSE argument for the first IF function and the FALSE argument of
the second IF function?
(1st IF)__thesecondIFstatement__asshownbelow______ (1 mark)
IF(AND(B2>10000,B2<=20000),1000+(B210000)*15%,2500+(B220000)*20%)
(2ND IF)____2500+(B220000)*20%)____________________(1 mark)

c) What is the value returned (i.e. the tax payable) by the nested IF formula if an
employee earns $30000?
(1 mark)
__________$4500_______________________________________

d) How would the IF formula handle a negative salary amount. As an example

consider how the formula would calculate the tax payable on a salary of -$1000?
Write down below the part of the formula (i.e. the argument) that would be used in
calculating the tax payable on -$1000. Write down the tax payable that the
formula would return for -$1000.
(Part of the formula)

_2500+(B220000)*20%__________
(1 mark)

(Tax Payable for -$1000)

__$1700____________________ (1 mark)

e) In view of the issue raised in part (d) above, what change would you make to your
formula to successfully handle negative salary amounts?
(3 marks)
________________________________________________________
Wewouldaddthefollowingunderlinedcodetotheexistingformulato
producethefollowing:=IF(B2<0,0,(thenfollowsexistingformula
(IF(AND(B2>=0,B2<=10000),B2*10%,IF(AND(B2>10000,B2<=20000),1000+(B2
10000)*15%,2500+(B220000)*20%))followedbytwobrackets))

Continuednextpage
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MGTS1201 Transforming Business with Information Systems

f) A tax payable table has now been added to the workbook as shown below. You
are required to write a VLOOKUP function in cell B3 to replace the IF function
and calculate the tax payable for incomes zero or greater (in cell B2) according to
the table.

____=VLOOKUP(B2,A7:C9,2,TRUE)+VLOOKUP(B2,A7:C9,3,TRUE)*(B2
VLOOKUP(B2,A7:C9,1,TRUE))____________________________ (4 marks)

____________________________________________________

1
2

Gross Income

Tax Payable

4
5

Tax Table

Gross Income

Fixed Tax

Percentage on Difference

$0

$0

10%

$10000

$1000

15%

$20000

$2500

20%

g) Show how you would add an IF function to your answer in (f) so that the new
formula (in cell B3) could handle gross incomes less than zero (i.e. without
changing the Tax Table)?
IF(B2<0,0,(VLOOKUP(B2,A7:C9,2,TRUE)+VLOOKUP(B2,A7:C9,3,TRUE)*(B2
VLOOKUP(B2,A7:C9,1,TRUE))))
Therequiredcodeis:=IF(B2<0,0,followedby2additionalbrackets(2 marks)

END OF EXAM

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