1) Which statement is false about IT outsourcing?

Outsourcing converts fixed costs into variable costs

SaaS and cloud computing are different names of outsourcing

Control and cost are two major benefits of outsourcing

Outsourcing allows firms to focus on core competencies.

2) Which of the following statements is not true about functional area information systems?

One business process can cross several functional area information systems.

TPS, MIS, and EIS are examples of individual functional area information systems. (true)

One independent database is recommended for functional area information systems in one company.

An ERP package solution helps to integrate several functional area information systems.

3) Which statement is not true about the direct conversion of information systems?

It is the least expensive compared with other methods.

It is the riskiest method.

The old and new systems need to be used at the same time.

It involves shutting the old system off and turning the new system on at a certain point of time.