WGU - INFORMATION TECHNOLOGY
MANAGEMENT EXAM REVIEW
QUESTIONS WITH COMPLETE
SOLUTIONS
Information types (4 types) - Answer-Internal, external, Objective, Subjective
Internal Information - Answer-information about the organization
External Information - Answer-information about the environment in which the
organization operates
Objective Information - Answer-known, measurable information
Subjective Information - Answer-estimates, unknowns, educated guesses
Break Even Analysis (Definition and a tip) - Answer-When (Revenue - Variable Cost)
times number of units sold is greater than or equal to Fixed Cost, you have broken even
(Tip) Use Technology to reduce fixed or variable costs and increase revenue
Fixed Cost (Part of break-even analysis) - Answer-amount you spend no matter how
much you sell (rent, design, advertising)
Variable Cost (part of break-even analysis) - Answer-unit price of labor and materials
Revenue (part of break-even analysis) - Answer-how much you sell each unit for
Delete this card - Answer-Delete this card
Competitive Advantage - Answer-Providing more value than the competition
Porter's Five Forces - Answer-Buyer Power, Supplier Power, Threat of Substitutes,
Threat of New Entrants, Competitive Rivalry
Buyer Power - Answer-(One of Porter's Five Forces) customers have many choices and
low switching costs, reduce their power by locking customers into your product or
service
Supplier Power - Answer-(One of Porter's Five Forces) customers have few choices and
high switching costs
,Threat of Substitutes - Answer-(One of Porter's Five Forces) alternatives to a given
product or service
Threat of New Entrants - Answer-(One of Porter's Five Forces) how easily someone
else can come in and copy what you're doing
Competitive Rivalry - Answer-(One of Porter's Five Forces) how hard competitors
compete against each other, do they collude on pricing or try to undercut each other
Porter's 3 Strategies - Answer-Focus, Differentiation, Cost Leadership
Porter's Focus Strategy - Answer-provide something no one else does, narrow or niche
strategy
Porter's Differentiation strategy - Answer-offer similar products but a unique experience
Porter's Cost Leadership strategy - Answer-offer the same product at a better price
Information Systems (8 types) - Answer-1. Supply Chain Management, 2.Customer
Relationship Management, 3.Partner Relationship Management, 4.Knowledge
Management, 5.Human Resource Information System, 6.Finance Information System,
7.Accounting Information System, 8.Enterprise Resource Planning
SCM - Answer-Supply Chain Management
Supply Chain Management - Answer-tracking of inventory, production, distribution, and
other aspects of the product lifecycle to ensure each department's actions coordinate
with those of others
CRM - Answer-Customer Relationship Mangement
Customer Relationship Management - Answer-managing and tracking interactions with
customers or potential customers, including leads, contact management, sales
forecasts, order fulfillment, and post-sale support and warranties
PRM - Answer-Partner Relationship Mangement
Partner Relationship Management - Answer-Specialized application of CRM, focused
on relationships with channel partners and distributors as opposed to direct customers
Knowledge Management - Answer-Collaboration and sharing of information among
employees or customers
HR - Answer-Human Resources
, Human Resource Information System - Answer-Staffing, training, hiring, career
management, and performance evaluation
Finance Information System - Answer-Manage how a business makes investments and
manages its assets
Accounting Information System - Answer-Manages monetary transactions, the flow of
money in and out of the business and reporting on such
Enterprise Resource Planning - Answer-comprehensive, integrated system that brings
together SCM,CRM, accounting, finance, HR, and other systems to ensure information
freely flows through a centralized database
Social Media (3 types) - Answer-Web 1.0, Web 2.0, Facebook Twitter, Google + etc.
Web 1.0 - Answer-early days of the internet, static text and images programmed directly
into webpages
Web 2.0 - Answer-dynamic text, database-driven to provide unique content, able to be
manipulated and changed by page visitors or external sources
Facebook, Twitter, Google+, LinkedIn, Tumblr, World of Warcraft, Foursquare, etc. -
Answer-systems used to keep users in contact with people they already know or get to
know new people who are interested in similar things, driven by location, relationships,
and sharing of user-generated content
2 categories of computer technology - Answer-hardware, software
Hardware (6 types) - Answer-Input, Output, Storage, Processing, Telecommunication,
Peripheral
Input Hardware - Answer-keyboard, mouse, microphone, joystick, scanner or other
devices used to turn human actions or real life information into commands for the
computer to carry out
Output Hardware - Answer-monitor, speakers, printer, or other device used to translate
information into a form humans can understand (a touchscreen could be both input and
output or I/O)
Storage Hardware - Answer-hard drive, memory card, DVD, or other device for storing
information
Processing Hardware - Answer-the CPU or brain of the computer that actually performs
calculations; some video cards may have a separate processor optimized for graphics
MANAGEMENT EXAM REVIEW
QUESTIONS WITH COMPLETE
SOLUTIONS
Information types (4 types) - Answer-Internal, external, Objective, Subjective
Internal Information - Answer-information about the organization
External Information - Answer-information about the environment in which the
organization operates
Objective Information - Answer-known, measurable information
Subjective Information - Answer-estimates, unknowns, educated guesses
Break Even Analysis (Definition and a tip) - Answer-When (Revenue - Variable Cost)
times number of units sold is greater than or equal to Fixed Cost, you have broken even
(Tip) Use Technology to reduce fixed or variable costs and increase revenue
Fixed Cost (Part of break-even analysis) - Answer-amount you spend no matter how
much you sell (rent, design, advertising)
Variable Cost (part of break-even analysis) - Answer-unit price of labor and materials
Revenue (part of break-even analysis) - Answer-how much you sell each unit for
Delete this card - Answer-Delete this card
Competitive Advantage - Answer-Providing more value than the competition
Porter's Five Forces - Answer-Buyer Power, Supplier Power, Threat of Substitutes,
Threat of New Entrants, Competitive Rivalry
Buyer Power - Answer-(One of Porter's Five Forces) customers have many choices and
low switching costs, reduce their power by locking customers into your product or
service
Supplier Power - Answer-(One of Porter's Five Forces) customers have few choices and
high switching costs
,Threat of Substitutes - Answer-(One of Porter's Five Forces) alternatives to a given
product or service
Threat of New Entrants - Answer-(One of Porter's Five Forces) how easily someone
else can come in and copy what you're doing
Competitive Rivalry - Answer-(One of Porter's Five Forces) how hard competitors
compete against each other, do they collude on pricing or try to undercut each other
Porter's 3 Strategies - Answer-Focus, Differentiation, Cost Leadership
Porter's Focus Strategy - Answer-provide something no one else does, narrow or niche
strategy
Porter's Differentiation strategy - Answer-offer similar products but a unique experience
Porter's Cost Leadership strategy - Answer-offer the same product at a better price
Information Systems (8 types) - Answer-1. Supply Chain Management, 2.Customer
Relationship Management, 3.Partner Relationship Management, 4.Knowledge
Management, 5.Human Resource Information System, 6.Finance Information System,
7.Accounting Information System, 8.Enterprise Resource Planning
SCM - Answer-Supply Chain Management
Supply Chain Management - Answer-tracking of inventory, production, distribution, and
other aspects of the product lifecycle to ensure each department's actions coordinate
with those of others
CRM - Answer-Customer Relationship Mangement
Customer Relationship Management - Answer-managing and tracking interactions with
customers or potential customers, including leads, contact management, sales
forecasts, order fulfillment, and post-sale support and warranties
PRM - Answer-Partner Relationship Mangement
Partner Relationship Management - Answer-Specialized application of CRM, focused
on relationships with channel partners and distributors as opposed to direct customers
Knowledge Management - Answer-Collaboration and sharing of information among
employees or customers
HR - Answer-Human Resources
, Human Resource Information System - Answer-Staffing, training, hiring, career
management, and performance evaluation
Finance Information System - Answer-Manage how a business makes investments and
manages its assets
Accounting Information System - Answer-Manages monetary transactions, the flow of
money in and out of the business and reporting on such
Enterprise Resource Planning - Answer-comprehensive, integrated system that brings
together SCM,CRM, accounting, finance, HR, and other systems to ensure information
freely flows through a centralized database
Social Media (3 types) - Answer-Web 1.0, Web 2.0, Facebook Twitter, Google + etc.
Web 1.0 - Answer-early days of the internet, static text and images programmed directly
into webpages
Web 2.0 - Answer-dynamic text, database-driven to provide unique content, able to be
manipulated and changed by page visitors or external sources
Facebook, Twitter, Google+, LinkedIn, Tumblr, World of Warcraft, Foursquare, etc. -
Answer-systems used to keep users in contact with people they already know or get to
know new people who are interested in similar things, driven by location, relationships,
and sharing of user-generated content
2 categories of computer technology - Answer-hardware, software
Hardware (6 types) - Answer-Input, Output, Storage, Processing, Telecommunication,
Peripheral
Input Hardware - Answer-keyboard, mouse, microphone, joystick, scanner or other
devices used to turn human actions or real life information into commands for the
computer to carry out
Output Hardware - Answer-monitor, speakers, printer, or other device used to translate
information into a form humans can understand (a touchscreen could be both input and
output or I/O)
Storage Hardware - Answer-hard drive, memory card, DVD, or other device for storing
information
Processing Hardware - Answer-the CPU or brain of the computer that actually performs
calculations; some video cards may have a separate processor optimized for graphics
