WGU C724 Information Systems Management OA Actual
Exam 2026/2027 | Questions with Verified Answers | 100%
Correct | Pass Guaranteed
SECTION 1: Foundations of Information Systems (14 Questions)
Competency Focus: 1.1 Describe core IS components | 1.2 Distinguish operational vs
analytical systems | 1.3 Explain IS strategic role
Q1: Which component is NOT considered part of the basic Information Systems
triangle?
A. People
B. Profit
C. Processes
D. Technology
Correct Answer: B
Rationale: Competency C724 1.1 – The IS triangle = People, Processes, Technology.
Profit is an outcome, not a core component. Distractors are the three valid corners.
Q2 (Select all that apply): Which are typical functions of an Enterprise Resource
Planning (ERP) system? (Select all)
A. Integrates finance, HR, supply-chain data
,B. Provides real-time dashboards for decision-making
C. Replaces the need for data governance
D. Standardizes processes across business units
Correct Answer: A, B, D
Rationale: Competency 1.3 – ERP integrates cross-functional data (A), offers
dashboards (B), and standardizes processes (D). ERP does not eliminate governance
needs (C is false).
Q3: A retail chain installs sensors on shelves that send immediate inventory updates to
a central database. This is an example of:
A. Batch processing
B. OLTP (Online Transaction Processing)
C. Data mining
D. OLAP cube
Correct Answer: B
Rationale: Competency 1.2 – Real-time capture of individual transactions = OLTP. Batch
(A) is delayed; mining/OLAP (C,D) are analytical, not operational.
Q4: The primary strategic value of information systems is to:
A. Reduce electricity consumption
B. Enable data-driven decisions and competitive advantage
C. Eliminate all human error
,D. Decrease employee count
Correct Answer: B
Rationale: Competency 1.3 – IS should create value via better decisions and
differentiation. Other choices are side effects or unrealistic.
Q5: Which storage format is semi-structured?
A. SQL employee table
B. JSON log file from web server
C. MP4 training video
D. Excel budget sheet
Correct Answer: B
Rationale: Competency 1.1 – JSON has tags but no fixed schema = semi-structured.
SQL (A) & Excel (D) are structured; MP4 (C) is unstructured binary.
Q6 (Matching): Match the IS role with its typical metric. Write the letter of the choice in
the blank.
1. Operational efficiency ___
2. Customer intimacy ___
3. Business model innovation ___
A. Cycle-time reduction
B. Net Promoter Score (NPS)
C. New revenue stream percentage
Correct Answers: 1-A, 2-B, 3-C
, Rationale: Competency 1.3 – Efficiency uses time metrics (A), intimacy uses
satisfaction (B), innovation tracks new income (C).
Q7: A company’s ** CIO creates a five-year technology roadmap**. This activity best
exemplifies which IS management responsibility?
A. Strategic planning
B. Systems analysis
C. Network troubleshooting
D. User training
Correct Answer: A
Rationale: Competency 1.3 – Long-term roadmaps are strategic artifacts. Other choices
are tactical or operational.
Q8: In the data-information-knowledge-wisdom (DIKW) pyramid, wisdom is
distinguished by:
A. Raw sensor readings
B. Contextualized facts
C. Judgments and insights for decision-making
D. Structured databases
Correct Answer: C
Exam 2026/2027 | Questions with Verified Answers | 100%
Correct | Pass Guaranteed
SECTION 1: Foundations of Information Systems (14 Questions)
Competency Focus: 1.1 Describe core IS components | 1.2 Distinguish operational vs
analytical systems | 1.3 Explain IS strategic role
Q1: Which component is NOT considered part of the basic Information Systems
triangle?
A. People
B. Profit
C. Processes
D. Technology
Correct Answer: B
Rationale: Competency C724 1.1 – The IS triangle = People, Processes, Technology.
Profit is an outcome, not a core component. Distractors are the three valid corners.
Q2 (Select all that apply): Which are typical functions of an Enterprise Resource
Planning (ERP) system? (Select all)
A. Integrates finance, HR, supply-chain data
,B. Provides real-time dashboards for decision-making
C. Replaces the need for data governance
D. Standardizes processes across business units
Correct Answer: A, B, D
Rationale: Competency 1.3 – ERP integrates cross-functional data (A), offers
dashboards (B), and standardizes processes (D). ERP does not eliminate governance
needs (C is false).
Q3: A retail chain installs sensors on shelves that send immediate inventory updates to
a central database. This is an example of:
A. Batch processing
B. OLTP (Online Transaction Processing)
C. Data mining
D. OLAP cube
Correct Answer: B
Rationale: Competency 1.2 – Real-time capture of individual transactions = OLTP. Batch
(A) is delayed; mining/OLAP (C,D) are analytical, not operational.
Q4: The primary strategic value of information systems is to:
A. Reduce electricity consumption
B. Enable data-driven decisions and competitive advantage
C. Eliminate all human error
,D. Decrease employee count
Correct Answer: B
Rationale: Competency 1.3 – IS should create value via better decisions and
differentiation. Other choices are side effects or unrealistic.
Q5: Which storage format is semi-structured?
A. SQL employee table
B. JSON log file from web server
C. MP4 training video
D. Excel budget sheet
Correct Answer: B
Rationale: Competency 1.1 – JSON has tags but no fixed schema = semi-structured.
SQL (A) & Excel (D) are structured; MP4 (C) is unstructured binary.
Q6 (Matching): Match the IS role with its typical metric. Write the letter of the choice in
the blank.
1. Operational efficiency ___
2. Customer intimacy ___
3. Business model innovation ___
A. Cycle-time reduction
B. Net Promoter Score (NPS)
C. New revenue stream percentage
Correct Answers: 1-A, 2-B, 3-C
, Rationale: Competency 1.3 – Efficiency uses time metrics (A), intimacy uses
satisfaction (B), innovation tracks new income (C).
Q7: A company’s ** CIO creates a five-year technology roadmap**. This activity best
exemplifies which IS management responsibility?
A. Strategic planning
B. Systems analysis
C. Network troubleshooting
D. User training
Correct Answer: A
Rationale: Competency 1.3 – Long-term roadmaps are strategic artifacts. Other choices
are tactical or operational.
Q8: In the data-information-knowledge-wisdom (DIKW) pyramid, wisdom is
distinguished by:
A. Raw sensor readings
B. Contextualized facts
C. Judgments and insights for decision-making
D. Structured databases
Correct Answer: C
