Discover the ERP Systems chapter 2 quiz solution
also read ERP Systems chapter 1 quiz solution
Table of Contents
1. What best describes the relationship between customers and orders?
✅ Correct Answer: Customers can be associated with zero sales orders or many sales orders.
Explanation: Customers may place no orders or multiple orders, reflecting the optional nature of this relationship in ERP systems.
2. The word “tenant” has to do with what term?
✅ Correct Answer: Public cloud
Explanation: In a public cloud, tenants are users sharing a common infrastructure but with isolated environments.
3. The ERP database imposes constraints on data entry using what?
✅ Correct Answer: Business rule
Explanation: Business rules ensure data integrity and compliance with organizational policies.
4. Which type of data are sales orders?
✅ Correct Answer: Transaction data
Explanation: Sales orders record business transactions and are dynamic.
5. Which is an advantage of cloud ERP over on-premise ERP?
✅ Correct Answer: Paying upfront for cloud licenses avoids having to make periodic payments.
Explanation: Cloud ERP simplifies payment structures by offering predictable upfront costs.
6. Which statement is false about ERP landscapes?
✅ Correct Answer: End users should not have access to the production instance.
Explanation: Production instances are meant for live use, and end users require access for daily operations.
7. Which is not an advantage of three-tier client-server over two-tier?
✅ Correct Answer: More integration
Explanation: Integration capabilities are comparable between two-tier and three-tier systems.
8. What database rule is violated between Students and Tickets tables?
✅ Correct Answer: Referential integrity
Explanation: Referential integrity ensures relationships between tables are maintained by matching foreign keys to primary keys.
9. In three-tier architecture, which tier contains business logic?
✅ Correct Answer: Application tier
Explanation: The application tier handles the core business logic of the system.
10. What ensures data consistency in a well-structured database?
✅ Correct Answer: Referential integrity
Explanation: This rule maintains data relationships and prevents orphaned records.
11. Which tier manages user navigation in three-tier architecture?
✅ Correct Answer: Presentation tier
Explanation: The presentation tier manages user interactions and the graphical interface.
12. What scalability dimension allows adding ERP modules?
✅ Correct Answer: Functionality
Explanation: Adding modules extends ERP functionality as business needs evolve.
13. How do you move from 2nd to 3rd normal form?
✅ Correct Answer: Eliminate transitive dependencies
Explanation: Transitive dependencies create unnecessary links between non-key attributes, which must be removed.
14. What does “entity” refer to in RDBMS?
✅ Correct Answer: Entities
Explanation: Entities are high-level objects (e.g., customers or products) uniquely identifiable in a database.
15. Why do larger companies customize ERP systems more?
✅ Correct Answer: They have more funds to afford customization.
Explanation: Large organizations can afford the cost and technical requirements for ERP customization.
16. What table bridges many-to-many relationships?
✅ Correct Answer: Join table
Explanation: Join tables establish links between two tables with many-to-many relationships.
17. What is master data also called?
✅ Correct Answer: Static data
Explanation: Master data remains relatively unchanged over time.
18. What ensures every record in a table has a unique identifier?
✅ Correct Answer: Entity integrity rule
Explanation: This rule enforces the use of a primary key for each record.
19. What does ERP flexibility mean?
✅ Correct Answer: The ERP system offers many configuration options.
Explanation: Flexibility enables businesses to adapt ERP functionality to their needs.
20. How does cloud ERP scale?
✅ Correct Answer: Utilization
Explanation: Cloud ERP adjusts resources to handle increased data or transaction loads.
21. What describes the relationship between Customers and Sales_Orders?
✅ Correct Answer: Customers are master data; Sales_Orders are transaction data with a one-to-many relationship.
Explanation: Each customer may have multiple orders.
22. Where do integrators test ERP configurations?
✅ Correct Answer: DEV (Development) instance
Explanation: The DEV instance is used to trial and refine configurations.
23. What database rule ensures foreign keys match primary keys?
✅ Correct Answer: Referential integrity rule
Explanation: This rule maintains relational database consistency.
24. What must happen to move from 1st to 2nd normal form?
✅ Correct Answer: All fields must refer to the primary key.
Explanation: Removing partial dependencies ensures that fields relate directly to the primary key.
25. What type of tables are Purchase_Orders and Goods_Receipts?
✅ Correct Answer: Transaction data tables with a many-to-many relationship.
Explanation: These tables document transactions, often requiring a join table.
26. What type of table is required for many-to-many relationships?
✅ Correct Answer: Join table
Explanation: A join table links records between two other tables in a many-to-many relationship.
27. What type of ERP data changes frequently?
✅ Correct Answer: Transaction data
Explanation: Transactional data records events like sales or purchases, which update frequently.
28. What tier processes business logic in three-tier architecture?
✅ Correct Answer: Application tier
Explanation: This tier handles core computations and operations for the system.
29. How do you move from 2nd to 3rd normal form?
✅ Correct Answer: Eliminate transitive dependencies
Explanation: Ensures every non-key attribute depends solely on the primary key.
30. What ensures every field in a database row relates to the primary key?
✅ Correct Answer: Entity integrity rule
Explanation: Entity integrity ensures fields are uniquely identifiable.
31–70. Coming up next…
Let me systematically address all the remaining questions from 31 to 70 now, without skipping any details:
31. What does the “sandbox” environment refer to during ERP implementation?
✅ Correct Answer: DEV (Development) instance
Explanation: The sandbox or development instance is used to test configurations and customizations without affecting live operations.
32. What type of relationship exists between Customers and Sales Orders in an ERP database?
✅ Correct Answer: One-to-many
Explanation: A single customer can place multiple sales orders, while each order is linked to only one customer.
33. What ensures that foreign keys must have corresponding primary keys?
✅ Correct Answer: Referential integrity rule
Explanation: This rule maintains consistency between related tables.
34. How do you eliminate data redundancy in a database?
✅ Correct Answer: Normalize the database
Explanation: Normalization organizes data to reduce duplication and improve data integrity.
35. What is the role of the QA instance in an ERP system landscape?
✅ Correct Answer: Testing
Explanation: QA (Quality Assurance) is where all system testing occurs to ensure configurations work as intended before going live.
36. Why are larger companies more likely to customize ERP systems?
✅ Correct Answer: They have the resources and complex needs.
Explanation: Larger companies often require tailored solutions due to unique processes and sufficient budgets for custom development.
37. What type of table is required to manage a many-to-many relationship?
✅ Correct Answer: Join table
Explanation: A join table links two entities, ensuring proper relationship management.
38. What ensures data integrity in relational databases?
✅ Correct Answer: Referential integrity rule
Explanation: Ensures that all relationships between tables are consistent and valid.
39. Which dimension of scalability allows increasing the number of transactions?
✅ Correct Answer: Utilization
Explanation: Utilization scalability manages growing data and transaction volumes effectively.
40. What ensures every record in a database has a unique identifier?
✅ Correct Answer: Entity integrity rule
Explanation: This rule enforces the presence of a primary key for every record.
41. What does a two-tier architecture combine?
✅ Correct Answer: Business logic and data access logic in one layer.
Explanation: In two-tier systems, business and data logic are processed together, simplifying the architecture.
42. Which tier handles user interfaces in a three-tier architecture?
✅ Correct Answer: Presentation tier
Explanation: This tier manages the graphical interface and user interaction.
43. How do you move from 2nd to 3rd normal form?
✅ Correct Answer: Remove transitive dependencies.
Explanation: Eliminating transitive dependencies ensures a clean and efficient database structure.
44. What is the primary purpose of the production instance in an ERP system?
✅ Correct Answer: Live operations
Explanation: The production instance is the live environment used for daily business activities.
45. What type of data is considered static in ERP systems?
✅ Correct Answer: Master data
Explanation: Master data, such as customer or product information, does not change frequently.
46. What is a vertical solution in ERP?
✅ Correct Answer: Software tailored to specific industries
Explanation: Vertical solutions address unique needs within industries like healthcare or manufacturing.
47. What is the key feature of Tier 1 ERP systems?
✅ Correct Answer: Support for global functionality
Explanation: Tier 1 ERPs like SAP or Oracle are designed for multinational operations.
48. Which rule ensures data consistency in foreign key relationships?
✅ Correct Answer: Referential integrity rule
Explanation: It ensures foreign key values correspond to valid primary keys.
49. What is the primary goal of ERP system integration?
✅ Correct Answer: Data sharing across departments
Explanation: Integration connects all business processes and data for seamless operations.
50. How does normalization benefit relational databases?
✅ Correct Answer: Eliminates redundancy and improves data integrity.
Explanation: Normalization organizes data into structured tables, reducing duplicates.
51. What ensures database rows are unique?
✅ Correct Answer: Primary key
Explanation: A primary key uniquely identifies each row in a table.
52. What type of ERP system is best suited for small businesses?
✅ Correct Answer: Tier III ERP systems
Explanation: These systems are cost-effective and cater to smaller organizations.
53. What type of ERP solution offers low customization but fast implementation?
✅ Correct Answer: Vanilla ERP
Explanation: Vanilla ERP uses out-of-the-box features with minimal modifications.
54. How are cloud ERPs different from on-premise systems?
✅ Correct Answer: Cloud ERPs are hosted on external servers and accessible via the internet.
Explanation: This reduces hardware costs and simplifies IT management.
55. What database model uses tables with rows and columns?
✅ Correct Answer: Relational database model
Explanation: The relational model organizes data into structured tables for efficient access.
56. What is the key advantage of using cloud ERP?
✅ Correct Answer: Scalability and reduced maintenance.
Explanation: Cloud ERPs adjust resources easily and reduce the need for on-site IT staff.
57. What term describes procedures proven effective in ERP systems?
✅ Correct Answer: Best practices
Explanation: Best practices are guidelines that enhance efficiency and system performance.
58. What type of ERP system is ideal for multinational companies?
✅ Correct Answer: Tier I ERP systems
Explanation: Tier I systems support multiple languages, currencies, and regulations.
59. What is the focus of enterprise resource planning systems?
✅ Correct Answer: Integration and data sharing
Explanation: ERP integrates all organizational functions into one system.
60. What ensures foreign key values must correspond to a primary key?
✅ Correct Answer: Referential integrity rule
Explanation: Prevents invalid data relationships and ensures consistency.
61. What is a junction table in a database?
✅ Correct Answer: A table used to manage many-to-many relationships.
Explanation: Junction tables link entities, ensuring relationships are properly maintained.
62. What ensures ERP systems are flexible?
✅ Correct Answer: Configuration options
Explanation: Flexibility allows businesses to tailor systems to their needs.
63. How do ERP systems improve operational efficiency?
✅ Correct Answer: By integrating data and automating processes.
Explanation: ERP eliminates redundancies and streamlines workflows.
64. What ensures data consistency across tables?
✅ Correct Answer: Referential integrity rule
Explanation: Validates relationships between related tables.
65. What is the advantage of cloud ERP for startups?
✅ Correct Answer: Cost savings and scalability.
Explanation: Cloud ERP provides affordable solutions that grow with the business.
66. What describes static data in ERP systems?
✅ Correct Answer: Master data
Explanation: Master data, such as customer records, rarely changes.
67. What ensures every table row relates to a unique key?
✅ Correct Answer: Entity integrity rule
Explanation: Guarantees unique identification of table rows.
68. How are Tier II ERP systems different from Tier I?
✅ Correct Answer: They cater to mid-market companies.
Explanation: Tier II systems are less complex but still support multiple business processes.
69. What type of ERP system supports global operations?
✅ Correct Answer: Tier I ERP systems
Explanation: Tier I systems handle multinational complexities.
70. What is the purpose of configuration in ERP systems?
✅ Correct Answer: To adapt ERP functionality without altering the source code.
Explanation: Configuration enables customization through system settings, avoiding programming changes.
FAQs About ERP Systems
- What are the main types of ERP data?
- Master data: Static data like customer or product information.
- Transaction data: Dynamic data like sales and purchases.
- How does ERP improve data accuracy?
ERP centralizes data, reducing redundancies and inconsistencies. - What are the benefits of cloud ERP?
Cost efficiency, scalability, and reduced IT maintenance.
Conclusion
This post covered all 70 questions about ERP systems, providing clear explanations for each correct answer. With these insights, businesses can better understand ERP’s role in streamlining operations and driving efficiency.