IFSM 300 UPDATED 2026 EXAM SCRIPT QUESTIONS
AND ANSWERS RATED A+
✔✔Which of the following statements are true of Decision Support Systems (DSS)?
(select all that apply) - ✔✔A. a decision support system (DSS) is an information system
built to help an organization make a specific decision or set of decisions.
B. DSSs are used only at the executive level and are used to make all strategic
decisions
C. DSSs are designed to take inputs regarding a known (or partially-known) decision-
making process and provide the information necessary to make a decision.
D. DSSs can exist at different levels of decision-making with the organization, from the
CEO to the first-level managers.
Answer: A, C, D
✔✔Which of the following groups of variables are all direct variables? - ✔✔A.
customers, suppliers, government regulations, technology
B. suppliers, time, politics, owners
C. supplier, customers, employees, location
D. employees, location, technology, organizational components
Answer: C
✔✔Strategic issues related to business processes and the value chain are addressed at
which organizational level? - ✔✔a. corporate level
b. business unit level
c. functional level
d. strategic level
Answer: C
✔✔Which of the following are the two primary methods for obtaining competitive
advantage described by Michael Porter? (select the two that apply) - ✔✔A. advantage
of bringing new products to market
B. cost advantage
C. differentiation advantage
D. value chain creation
Answer: all the above
✔✔T or F: Highly qualified vendors, consultants, and IT departments are the most
important elements for the successful implementation of enterprise technologies. -
✔✔False
,✔✔Which of the following is exemplified by customers finding a different way to get the
product or service? - ✔✔A. customer disloyalty
B. threat of substitute product or services
C. rivalry among competitors
D. barriers to entry
Answer: B
✔✔T or F: According to Michael Porter, the Internet has the effect of lowering overall
profitability. - ✔✔True
✔✔A strategic information system is one that attempts to do one or more of the
following: (select all that apply) - ✔✔A. help an organization focus on a specific market
segment
B. deliver a product or a service at lower cost
C. enable innovation
D. deliver a product or service that is differentiated
Answer: all of the above
✔✔T or F: The data show that IT has reduced the differences among companies. -
✔✔False
✔✔T or F: An IT plan should be developed before a strategic business plan so that
management will know what they can plan based on available systems. - ✔✔False
✔✔Which of the following flow chart symbols is used to represent a step or action which
is taken in the process? - ✔✔A. Rectangle
B. Diamond
C. Circle
Answer: A. Rectangle
✔✔Which of the following best defines a process? - ✔✔A. a series of events to get
something done
B. steps a worker follows to complete a task
C. a series of tasks that are completed in order to accomplish a goal
D. a strategic objective
Answer: C.
✔✔Which of the following are true about an Enterprise Resource Planning (ERP)
System? (Select all that apply) - ✔✔A. it has a centralized database
B. it can be used to run an entire company
, C. it is a software application
D. it has best practices built in
Answer: A, B, C, D
✔✔T or F: IT managers should implement new technology as soon as it hits the market,
always striving to obtain the least expensive products available. - ✔✔Answer: False
✔✔T or F: E-commerce is a subset of e-business. - ✔✔True
✔✔Which of the following is defined as an intentional effort to plan, document,
implement, and distribute an organization's business processes with the support of
information technology? - ✔✔A. business process engineering
B. business process management
C. business process reengineering
D. business process improvement
Answer: B.
✔✔Good IT management, which is necessary for a great IT plan, should do which of the
following? - ✔✔A. tell management what their business objectives should be
B. advise management if technology being considered to solve a problem is not yet
proven
C. advise management that available technology is too expensive
D. let management determine the desired technical solution
Answer: B
✔✔Which of the following flow chart symbols is used to represent a decision point in the
process? - ✔✔A. rectangle
B. diamond
C. circle
Answer: B
✔✔How often should the IT plan be changed? - ✔✔A. every five years
B. monthly
C. typically, every 3 to 5 years--or sooner, if business conditions warrant it.
D. never--an IT plan, once in place, does not change
Answer: C
✔✔E-bay is an example of which e-commerce model? - ✔✔A. B2C
B. C2B
C. C2C
AND ANSWERS RATED A+
✔✔Which of the following statements are true of Decision Support Systems (DSS)?
(select all that apply) - ✔✔A. a decision support system (DSS) is an information system
built to help an organization make a specific decision or set of decisions.
B. DSSs are used only at the executive level and are used to make all strategic
decisions
C. DSSs are designed to take inputs regarding a known (or partially-known) decision-
making process and provide the information necessary to make a decision.
D. DSSs can exist at different levels of decision-making with the organization, from the
CEO to the first-level managers.
Answer: A, C, D
✔✔Which of the following groups of variables are all direct variables? - ✔✔A.
customers, suppliers, government regulations, technology
B. suppliers, time, politics, owners
C. supplier, customers, employees, location
D. employees, location, technology, organizational components
Answer: C
✔✔Strategic issues related to business processes and the value chain are addressed at
which organizational level? - ✔✔a. corporate level
b. business unit level
c. functional level
d. strategic level
Answer: C
✔✔Which of the following are the two primary methods for obtaining competitive
advantage described by Michael Porter? (select the two that apply) - ✔✔A. advantage
of bringing new products to market
B. cost advantage
C. differentiation advantage
D. value chain creation
Answer: all the above
✔✔T or F: Highly qualified vendors, consultants, and IT departments are the most
important elements for the successful implementation of enterprise technologies. -
✔✔False
,✔✔Which of the following is exemplified by customers finding a different way to get the
product or service? - ✔✔A. customer disloyalty
B. threat of substitute product or services
C. rivalry among competitors
D. barriers to entry
Answer: B
✔✔T or F: According to Michael Porter, the Internet has the effect of lowering overall
profitability. - ✔✔True
✔✔A strategic information system is one that attempts to do one or more of the
following: (select all that apply) - ✔✔A. help an organization focus on a specific market
segment
B. deliver a product or a service at lower cost
C. enable innovation
D. deliver a product or service that is differentiated
Answer: all of the above
✔✔T or F: The data show that IT has reduced the differences among companies. -
✔✔False
✔✔T or F: An IT plan should be developed before a strategic business plan so that
management will know what they can plan based on available systems. - ✔✔False
✔✔Which of the following flow chart symbols is used to represent a step or action which
is taken in the process? - ✔✔A. Rectangle
B. Diamond
C. Circle
Answer: A. Rectangle
✔✔Which of the following best defines a process? - ✔✔A. a series of events to get
something done
B. steps a worker follows to complete a task
C. a series of tasks that are completed in order to accomplish a goal
D. a strategic objective
Answer: C.
✔✔Which of the following are true about an Enterprise Resource Planning (ERP)
System? (Select all that apply) - ✔✔A. it has a centralized database
B. it can be used to run an entire company
, C. it is a software application
D. it has best practices built in
Answer: A, B, C, D
✔✔T or F: IT managers should implement new technology as soon as it hits the market,
always striving to obtain the least expensive products available. - ✔✔Answer: False
✔✔T or F: E-commerce is a subset of e-business. - ✔✔True
✔✔Which of the following is defined as an intentional effort to plan, document,
implement, and distribute an organization's business processes with the support of
information technology? - ✔✔A. business process engineering
B. business process management
C. business process reengineering
D. business process improvement
Answer: B.
✔✔Good IT management, which is necessary for a great IT plan, should do which of the
following? - ✔✔A. tell management what their business objectives should be
B. advise management if technology being considered to solve a problem is not yet
proven
C. advise management that available technology is too expensive
D. let management determine the desired technical solution
Answer: B
✔✔Which of the following flow chart symbols is used to represent a decision point in the
process? - ✔✔A. rectangle
B. diamond
C. circle
Answer: B
✔✔How often should the IT plan be changed? - ✔✔A. every five years
B. monthly
C. typically, every 3 to 5 years--or sooner, if business conditions warrant it.
D. never--an IT plan, once in place, does not change
Answer: C
✔✔E-bay is an example of which e-commerce model? - ✔✔A. B2C
B. C2B
C. C2C
