1. What is the primary purpose of an information system?
A. To eliminate all employees
B. To collect, process, store, and distribute information
C. To replace every business process
D. To manufacture computer hardware
Answer: B
Rationale: Information systems support organizations by collecting, processing, storing, and
distributing information for operations and decision-making.
2. Which component of an information system refers to raw facts?
A. Information
B. Data
C. Knowledge
D. Procedures
Answer: B
Rationale: Data consists of raw facts and figures that can be processed to produce meaningful
information.
3. Information can best be described as:
A. Unprocessed facts
B. Meaningless numbers
C. Processed data with meaning
D. Computer hardware
Answer: C
Rationale: Information is data that has been processed and organized so that it becomes
meaningful and useful.
4. Which of the following is an example of hardware?
A. Microsoft Word
B. A database
,C. A keyboard
D. An operating procedure
Answer: C
Rationale: Hardware refers to the physical components of a computer system.
5. Software refers to:
A. Physical computer equipment
B. Programs and instructions used by a computer
C. People who use computers
D. Communication cables only
Answer: B
Rationale: Software consists of programs and instructions that tell computer hardware what to
do.
6. Which type of information system supports routine operational activities?
A. Transaction Processing System
B. Executive Support System
C. Expert System
D. Decision Support System
Answer: A
Rationale: Transaction Processing Systems process routine and repetitive organizational
transactions.
7. A system is best defined as:
A. A single computer
B. A collection of related components working toward a common objective
C. A database only
D. A group of unrelated technologies
Answer: B
Rationale: A system consists of interconnected components that work together to achieve a
common purpose.
8. Which of the following is an example of a transaction?
A. Developing a five-year strategy
,B. Recording a customer purchase
C. Designing a new organization
D. Conducting market research
Answer: B
Rationale: A transaction is an individual business event, such as a sale or payment.
9. Which system is most appropriate for senior executives?
A. TPS
B. ESS
C. Word processor
D. Spreadsheet only
Answer: B
Rationale: Executive Support Systems provide summarized strategic information to senior
managers.
10. The people who interact with an information system are known as:
A. Hardware
B. Users
C. Databases
D. Algorithms
Answer: B
Rationale: Users are individuals who interact with and use information systems.
11. Which of the following is NOT normally considered a component of an information
system?
A. People
B. Procedures
C. Data
D. Weather
Answer: D
Rationale: People, procedures, data, hardware, software, and networks are common information
system components.
, 12. A database is primarily used to:
A. Destroy information
B. Store and organize related data
C. Replace computer hardware
D. Prevent communication
Answer: B
Rationale: A database stores structured data so that it can be accessed, managed, and updated
efficiently.
13. Which management level focuses mainly on long-term planning?
A. Operational management
B. Strategic management
C. Supervisory management only
D. Technical management only
Answer: B
Rationale: Strategic management focuses on long-term organizational goals and direction.
14. Operational managers mainly require information that is:
A. Highly summarized
B. Historical only
C. Detailed and current
D. Completely external
Answer: C
Rationale: Operational managers need detailed and timely information to manage daily
activities.
15. Which system helps managers analyze complex problems?
A. TPS
B. DSS
C. Keyboard
D. Operating system
Answer: B
Rationale: Decision Support Systems help managers analyze information and make semi-
structured decisions.