BADM 7050
EXAM 2
Information Systems | Comprehensive Study Guide, 100 Practice Questions &
Fully Explained Answers
2026 edition • LSU course context • Clear topic coverage • Self-test question bank
100 8 6
Original multiple-choice questions Focused content domains Applied case exercises
Prepared for independent study. Not an LSU examination, official answer key, instructor publication, or guarantee of a
passing grade.
Use this guide to learn concepts, test your reasoning without seeing the key, and review worked explanations.
Actual Exam 2 coverage, format, and timing may differ by instructor and term.
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How to Use This Guide
This resource is built for the BADM 7050 Information Systems subject area using verified public course context
and common Exam 2 study themes. The September 2026 instructor-specific syllabus and assessment blueprint
were not available for verification; this is a study aid, not a reconstruction of a live examination.
Suggested study method: Read the high-yield review first. Answer questions 1-100 independently (about
100-120 minutes at practice pace). Mark uncertain answers. Use the compact key for scoring, then study the
detailed explanations and complete the applied cases.
Coverage Map
Part Study domain Question range
01 Business Processes & Enterprise Systems 01-12
02 IT Architecture, Infrastructure & Platforms 13-24
03 IT Governance & Organization 25-38
04 IT Investments & Business Cases 39-54
05 IT Funding & Cost Management 55-64
06 Sourcing, Vendors & Cloud Services 65-76
07 Project Delivery, Cybersecurity & Continuity 77-88
08 Performance, Data & Innovation 89-100
Scoring Guide
For 100 questions, calculate your percentage as the number correct out of 100. A score below 70 signals priority
review; 70-84 indicates developing competence; 85 or above is a strong practice result. These bands are study
suggestions, not LSU grading cutoffs.
High-Yield Review: Core Frameworks
Business processes and enterprise systems
An end-to-end process crosses functions to deliver an outcome; map its as-is steps before proposing a to-be
design. ERP integrates common processes and data; CRM focuses on customer relationships, and SCM
coordinates suppliers, inventory, and logistics. A bottleneck is the slowest required stage. Pair process redesign
with change management, data ownership, controls, and measurement.
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Architecture, infrastructure, and platforms
IT architecture defines structural patterns, data integration, and standards; infrastructure provides shared
foundations such as networking, identity, and compute. Transactional systems improve operational efficiency;
informational systems support analysis; strategic systems can support competitive differentiation. APIs and
modular designs support integration; platforms also need rules for partner access, quality, and change.
IT governance and organizational choices
Governance assigns decision rights and mechanisms for major IT choices. Common decision domains include IT
principles, architecture, infrastructure strategy, application needs, and investment/prioritization. Centralized IT
can support standards and supplier leverage; decentralized IT can enhance local responsiveness; federated
designs split authority deliberately. Governance evaluates, directs, and monitors.
Investment valuation and business cases
Build a decision-quality business case with a problem statement, options, financial and nonfinancial benefits,
costs, assumptions, risks, milestones, and ownership. NPV discounts future net cash flows; payback asks how
quickly initial costs are recovered; ROI relates net benefits to costs; TCO includes lifecycle costs; EVA subtracts
a capital charge from operating profit. Use uncertainty and sensitivity analysis rather than inventing precise
benefits.
Funding and cost control
Corporate budgeting pools IT funds; allocations distribute shared costs with a proxy such as headcount;
chargeback bills for measurable usage; showback communicates consumption costs without transferring
money. Each changes incentives. Track total cost, normalized unit costs, service quality, and capacity rather
than optimizing one number in isolation.
Sourcing and cloud
Outsourcing is an external-supplier decision; offshoring is a cross-border location choice, so they are not
synonyms. Contracts need measurable SLAs, security obligations, exit rights, and continuity plans. SaaS
provides applications, PaaS managed runtimes, and IaaS infrastructure resources. Cloud security responsibilities
depend on service model and do not disappear for the customer.
Delivery, controls, and recovery
Requirements, design, build, test, deployment, and ongoing operation form a development lifecycle. Agile
iteration can fit uncertain requirements but still requires governance. Access follows least privilege; MFA
reduces password-only exposure. RTO defines targeted restoration time and RPO sets tolerable data loss. Test
recovery procedures rather than trusting backup logs.
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Performance and innovation
Balanced scorecards prevent narrow financial-only management. Distinguish outputs (what teams deliver) from
outcomes (what changes for the business). Data governance improves consistent definitions and accountability.
Innovation extends creativity through experimentation, adoption, and value realization. Follow up post-launch
on promised benefits, not just delivery dates.
Formulas Worth Memorizing
Method Working relationship
Simple payback Initial investment / constant annual net cash inflow
NPV Sum of cash flow(t) / (1 + r)^t, including the initial outflow at t = 0
Simple ROI (Total measured benefit - total measured cost) / total measured cost
EVA After-tax operating profit - (capital employed x cost of capital)
Weighted score Sum of each criterion score x its weight (weights total 1.00)
Unit cost Total comparable cost / number of service units
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