Management information systems revision question and answer

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

Witu Ltd., a motor vehicle spare parts dealer, has its head office in Nairobi. The company has eight branches in Kenya, two in Uganda and one in Rwanda. To enable the branches share data and other resources, the company has a large database that is replicated in the computers located in the branches. These computers are interconnected through data communication networks. The database is centrally administered from Nairobi but the branches have flexibility and may customize the database to meet their needs.

Required:
(a) State the type of database used Witu Ltd.
(b) Explain the business reasons that may have encouraged Witu Ltd. to use this database.
(c) State and briefly explain advantages and disadvantages of the database used Witu Ltd.
ANSWER

Network database
Secure transactions
 Multiple access customers
 Communication purposes
 For backing up reasons
 Resource sharing

Advantages
– Scalability
– Support large client population
– Most flexible of the database
– Optimizes resource utilization
– More secure – Enables identification and monitoring of real users

Disadvantages
– Complex and difficult to comprehend, modify or reconstruct in case of failure.
– Costly – initial costs and maintaining costs.

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