WGU C724 Information Systems Management OA (pdf) | 2026/2027 |
Objective Assessment | Information Systems
1. Which of the following best describes the primary purpose of an
Information System (IS) in a business context?
A) To store large amounts of data for archival purposes only
B) To process, store, and disseminate data to support decision-making and
organizational strategy
C) To replace all human decision-makers with automated processes
D) To provide a platform for social media marketing exclusively
Correct Answer: To process, store, and disseminate data to support decision-
making and organizational strategy
Rationale: An Information System processes, stores, and disseminates data
to support decision-making and organizational strategy. It is not merely an
archival tool but a strategic asset that helps organizations achieve their
goals by providing timely and accurate information to decision-makers.
2. According to the C724 course materials, what are the six key components
of an Information System?
A) Hardware, Software, Data, Networks, People, and Processes
B) Hardware, Software, Data, Security, People, and Procedures
C) Input, Processing, Output, Storage, Feedback, and Control
D) Strategy, Structure, Systems, Style, Staff, and Skills
Correct Answer: Hardware, Software, Data, Networks, People, and Processes
Rationale: The six key components of an Information System are Hardware,
Software, Data, Networks, People, and Processes. These components work
,together to collect, process, store, and disseminate information to support
organizational goals.
3. A company is implementing a new customer relationship management
(CRM) system. The sales representatives who will use the system daily are
receiving training on its features. In the context of the six components of an
information system, the sales representatives represent which component?
A) Hardware
B) Software
C) People
D) Processes
Correct Answer: People
Rationale: The "People" component of an information system includes the
individuals who interact with the system, such as users, managers, and IT
staff. Sales representatives are the end-users of the CRM system and
represent the people component.
4. What strategic role has emerged as critical in recent years for Information
Systems Management?
A) Cost reduction through outsourcing
B) Aligning IT strategy with business strategy to enable organizational goals
C) Maintaining legacy systems for compatibility
D) Focusing solely on cybersecurity compliance
Correct Answer: Aligning IT strategy with business strategy to enable
organizational goals
,Rationale: Aligning IT strategy with business strategy has emerged as a
critical strategic role. Information Systems Management explores the
importance of viewing IT as an organizational resource that must be
managed so that it supports or enables organizational strategy.
5. Which type of information system is designed to support the day-to-day
operational activities of an organization?
A) Decision Support System (DSS)
B) Transaction Processing System (TPS)
C) Executive Information System (EIS)
D) Management Information System (MIS)
Correct Answer: Transaction Processing System (TPS)
Rationale: Transaction Processing Systems (TPS) are designed to support the
day-to-day operational activities of an organization by processing routine
business transactions. They handle tasks such as order entry, payroll, and
inventory tracking.
6. A retail manager uses a system that generates daily sales reports,
inventory levels, and employee performance metrics to monitor
departmental efficiency. This system is best classified as:
A) Transaction Processing System (TPS)
B) Management Information System (MIS)
C) Decision Support System (DSS)
D) Executive Information System (EIS)
Correct Answer: Management Information System (MIS)
, Rationale: Management Information Systems (MIS) provide managers with
reports on current performance to help them manage their departments
more efficiently. They generate scheduled reports that summarize
operational data for management decision-making.
7. An organization is facing a complex decision about whether to enter a new
market. The CEO uses a system that allows them to manipulate data, run
scenarios, and analyze potential outcomes. This system is most likely a:
A) Transaction Processing System (TPS)
B) Management Information System (MIS)
C) Decision Support System (DSS)
D) Executive Information System (EIS)
Correct Answer: Decision Support System (DSS)
Rationale: Decision Support Systems (DSS) support business decision-making
activities by manipulating information from systems below it in the hierarchy.
They allow users to analyze data, run simulations, and explore "what-if"
scenarios to support complex decisions.
8. Which system helps senior executives analyze information and develop
alternate actions and business strategies?
A) Decision Support System (DSS)
B) Executive Information System (EIS)
C) Management Information System (MIS)
D) Transaction Processing System (TPS)
Correct Answer: Executive Information System (EIS)
Objective Assessment | Information Systems
1. Which of the following best describes the primary purpose of an
Information System (IS) in a business context?
A) To store large amounts of data for archival purposes only
B) To process, store, and disseminate data to support decision-making and
organizational strategy
C) To replace all human decision-makers with automated processes
D) To provide a platform for social media marketing exclusively
Correct Answer: To process, store, and disseminate data to support decision-
making and organizational strategy
Rationale: An Information System processes, stores, and disseminates data
to support decision-making and organizational strategy. It is not merely an
archival tool but a strategic asset that helps organizations achieve their
goals by providing timely and accurate information to decision-makers.
2. According to the C724 course materials, what are the six key components
of an Information System?
A) Hardware, Software, Data, Networks, People, and Processes
B) Hardware, Software, Data, Security, People, and Procedures
C) Input, Processing, Output, Storage, Feedback, and Control
D) Strategy, Structure, Systems, Style, Staff, and Skills
Correct Answer: Hardware, Software, Data, Networks, People, and Processes
Rationale: The six key components of an Information System are Hardware,
Software, Data, Networks, People, and Processes. These components work
,together to collect, process, store, and disseminate information to support
organizational goals.
3. A company is implementing a new customer relationship management
(CRM) system. The sales representatives who will use the system daily are
receiving training on its features. In the context of the six components of an
information system, the sales representatives represent which component?
A) Hardware
B) Software
C) People
D) Processes
Correct Answer: People
Rationale: The "People" component of an information system includes the
individuals who interact with the system, such as users, managers, and IT
staff. Sales representatives are the end-users of the CRM system and
represent the people component.
4. What strategic role has emerged as critical in recent years for Information
Systems Management?
A) Cost reduction through outsourcing
B) Aligning IT strategy with business strategy to enable organizational goals
C) Maintaining legacy systems for compatibility
D) Focusing solely on cybersecurity compliance
Correct Answer: Aligning IT strategy with business strategy to enable
organizational goals
,Rationale: Aligning IT strategy with business strategy has emerged as a
critical strategic role. Information Systems Management explores the
importance of viewing IT as an organizational resource that must be
managed so that it supports or enables organizational strategy.
5. Which type of information system is designed to support the day-to-day
operational activities of an organization?
A) Decision Support System (DSS)
B) Transaction Processing System (TPS)
C) Executive Information System (EIS)
D) Management Information System (MIS)
Correct Answer: Transaction Processing System (TPS)
Rationale: Transaction Processing Systems (TPS) are designed to support the
day-to-day operational activities of an organization by processing routine
business transactions. They handle tasks such as order entry, payroll, and
inventory tracking.
6. A retail manager uses a system that generates daily sales reports,
inventory levels, and employee performance metrics to monitor
departmental efficiency. This system is best classified as:
A) Transaction Processing System (TPS)
B) Management Information System (MIS)
C) Decision Support System (DSS)
D) Executive Information System (EIS)
Correct Answer: Management Information System (MIS)
, Rationale: Management Information Systems (MIS) provide managers with
reports on current performance to help them manage their departments
more efficiently. They generate scheduled reports that summarize
operational data for management decision-making.
7. An organization is facing a complex decision about whether to enter a new
market. The CEO uses a system that allows them to manipulate data, run
scenarios, and analyze potential outcomes. This system is most likely a:
A) Transaction Processing System (TPS)
B) Management Information System (MIS)
C) Decision Support System (DSS)
D) Executive Information System (EIS)
Correct Answer: Decision Support System (DSS)
Rationale: Decision Support Systems (DSS) support business decision-making
activities by manipulating information from systems below it in the hierarchy.
They allow users to analyze data, run simulations, and explore "what-if"
scenarios to support complex decisions.
8. Which system helps senior executives analyze information and develop
alternate actions and business strategies?
A) Decision Support System (DSS)
B) Executive Information System (EIS)
C) Management Information System (MIS)
D) Transaction Processing System (TPS)
Correct Answer: Executive Information System (EIS)
