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WGU C724 Information System Management - 150 Questions with Verified Answers (2026/2027 Update) | A+ Guide

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CRUSH YOUR WGU C724 OA ON THE FIRST TRY! This comprehensive test bank is your ultimate study guide for the Information System Management course. It contains 150 meticulously crafted practice questions with correct, detailed, and verified answers and rationales to help you understand the "why" behind each concept.

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EXAMS




A+ | Questions & Answers (Verified Answers) With Rationales (2026 /
2027 Update)



This Document Contains:
150 Questions with Correct, Detailed and Verified Answers

2026/2027 Actual Exam Testbank

Questions & Answers (Verified Answers) With Rationales

100% Guaranteed Pass

Complete A+ Guide




Page 1

,Question 1

A multinational corporation is evaluating a strategic information system to integrate its global
supply chain. Which of the following is the most critical factor for achieving competitive advantage
through this system?

A) Minimizing the total cost of ownership by selecting a low-cost vendor
B) Ensuring the system provides unique capabilities that are difficult for competitors to replicate
C) Implementing the system across all departments within the first fiscal year
D) Using open-source software to avoid vendor lock-in

Answer: B) Ensuring the system provides unique capabilities that are difficult for competitors to
replicate
Explanation: Competitive advantage arises from resources that are valuable, rare, imperfectly
imitable, and non-substitutable (VRIN framework). Unique capabilities that competitors
cannot easily replicate provide sustained advantage. Cost minimization (A) and rapid
implementation (C) are operational efficiencies, not strategic differentiators.
Open-source software (D) may reduce cost but is easily adopted by competitors.

Question 2

A company's data warehouse contains customer transaction data over five years. The marketing
team wants to identify purchasing patterns that predict churn. Which data mining technique is
most appropriate for this predictive task?

A) Cluster analysis
B) Association rule learning
C) Classification
D) Regression analysis

Answer: C) Classification
Explanation: Classification is a supervised learning technique used to predict categorical outcomes
(e.g., churn vs. not churn) based on historical data. Cluster analysis (A) groups data
without predefined labels. Association rule learning (B) finds relationships between
items (e.g., market basket analysis). Regression (D) predicts continuous values, not
binary categories.




Page 2

,Question 3

An organization is implementing a new enterprise resource planning (ERP) system. Which of the
following best describes the primary risk associated with a 'big bang' implementation strategy?
A) Increased integration complexity due to phased rollouts
B) Extended timeline that delays realizing benefits
C) High potential for business disruption if the system fails at go-live
D) Difficulty in training users across multiple locations

Answer: C) High potential for business disruption if the system fails at go-live
Explanation: In a 'big bang' implementation, the entire system goes live at once, so any failure can
halt all business operations, causing severe disruption. Phased rollouts (A) are
alternative strategies that mitigate this risk. Extended timeline (B) is a characteristic of
phased approaches. Training (D) is a challenge in any implementation but not unique to
big bang.

Question 4

A financial services firm is designing a cybersecurity policy. Which combination of controls best
implements the principle of defense in depth?
A) Firewall, intrusion detection system, and data encryption
B) Single sign-on, antivirus software, and regular backups
C) Strong password policy, employee training, and access control lists
D) Biometric authentication, audit logs, and physical locks

Answer: A) Firewall, intrusion detection system, and data encryption
Explanation: Defense in depth uses multiple layers of security controls so that if one fails, others still
protect. Firewall (network perimeter), intrusion detection system (network monitoring),
and data encryption (data protection) cover different layers. The other options focus on
fewer layers or are redundant within the same layer.




Page 3

, Question 5

A hospital is adopting a cloud-based electronic health record (EHR) system. Under the Health
Insurance Portability and Accountability Act (HIPAA), which of the following is the hospital's
responsibility regarding the cloud service provider?

A) Ensuring the provider is not subject to any security audits
B) Entering into a business associate agreement (BAA) that specifies the provider's obligations
C) Transferring all liability for data breaches to the provider
D) Allowing the provider to use patient data for service improvement

Answer: B) Entering into a business associate agreement (BAA) that specifies the provider's
obligations
Explanation: HIPAA requires covered entities to have a BAA with business associates (like cloud
providers) that handle protected health information. The BAA defines the provider's
responsibilities. Option A is contrary to HIPAA security rule. Liability cannot be fully
transferred (C). Using patient data for service improvement without authorization
violates HIPAA (D).

Question 6

An e-commerce company uses a recommendation engine that analyzes customer browsing history
and purchase data. This system is best classified as which type of information system?
A) Transaction processing system (TPS)
B) Decision support system (DSS)
C) Executive support system (ESS)
D) Knowledge management system (KMS)

Answer: B) Decision support system (DSS)
Explanation: A DSS supports decision-making by analyzing data and presenting actionable insights.
The recommendation engine helps customers make purchasing decisions, fitting DSS.
TPS (A) processes routine transactions. ESS (C) supports top-level strategic decisions.
KMS (D) focuses on capturing and sharing organizational knowledge, not real-time
recommendations.




Page 4

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