Management Information Systems — CMIS 351
CMIS 351 – MANAGEMENT INFORMATION SYSTEMS LATEST EXAM
QUESTIONS AND SOLUTIONS - VERIFIED ANSWERS | 2026/2027
CMIS_351_Management_Information_Systems
1. The five components of an information system are:
A. Hardware, software, data, procedures, and people
B. Data, information, knowledge, wisdom, and insight
C. Hardware, software, networks, managers, and customers
D. Input, processing, output, storage, and feedback
ANSWER : A. Hardware, software, data, procedures, and people
The five-component framework adds data, procedures, and people to the
technology elements of hardware and software.
2. Raw facts that have not yet been organized into a meaningful form
are called:
A. Wisdom
B. Knowledge
C. Information
D. Data
ANSWER : D. Data
Data are unprocessed facts; once given context and meaning they become
information.
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, Management Information Systems — CMIS 351
3. Which characteristic makes information most useful to a decision
maker?
A. It is stored only on paper
B. It is accurate, timely, relevant, and complete
C. It is produced in the largest possible volume
D. It is gathered from as many unrelated sources as possible
ANSWER : B. It is accurate, timely, relevant, and complete
Quality information must be accurate, timely, relevant, and sufficient for
the decision at hand.
4. A transaction processing system (TPS) is primarily used to:
A. Model complex what-if scenarios for analysts
B. Record the routine, day-to-day transactions of a business
C. Provide long-range strategic forecasts to executives
D. Replace human decision makers entirely
ANSWER : B. Record the routine, day-to-day transactions of a
business
A TPS captures and processes high-volume operational transactions such
as sales, payroll, and orders.
5. Which type of system provides senior executives with summarized,
graphical views of key organizational performance data?
A. Office automation system
B. Process control system
C. Executive support system (dashboard)
D. Transaction processing system
ANSWER : C. Executive support system (dashboard)
Executive support systems and dashboards present high-level KPIs for
strategic monitoring.
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, Management Information Systems — CMIS 351
6. A decision support system (DSS) is best suited to support which type
of decisions?
A. Decisions that require no data
B. Decisions made only by front-line clerks
C. Semi-structured decisions
D. Fully structured, routine decisions
ANSWER : C. Semi-structured decisions
A DSS combines models and data to help managers with problems that
are partly structured and partly judgment-based.
7. According to Moore's Law, the number of transistors on a chip:
A. Triples every decade
B. Doubles approximately every 18 to 24 months
C. Halves every year
D. Remains constant over time
ANSWER : B. Doubles approximately every 18 to 24 months
Moore's Law describes the rapid, roughly biennial doubling of transistor
density, driving lower computing costs.
8. Metcalfe's Law states that the value of a network:
A. Increases with the square of the number of users connected to it
B. Is unrelated to the number of users
C. Is fixed by the cost of its hardware
D. Decreases as more users join
ANSWER : A. Increases with the square of the number of users
connected to it
Each new user adds many potential connections, so network value grows
roughly as n squared.
9. In Porter's five forces model, which force describes the ability of
customers to drive prices down?
A. Threat of new entrants
B. Threat of substitutes
C. Bargaining power of buyers
D. Bargaining power of suppliers
ANSWER : C. Bargaining power of buyers
Buyer power reflects how much customers can pressure a firm on price,
quality, and terms.
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, Management Information Systems — CMIS 351
10. A company that sells generic products at the lowest price in an
industry is pursuing which competitive strategy?
A. Focus differentiation
B. Differentiation
C. Market diversification
D. Cost leadership
ANSWER : D. Cost leadership
Cost leadership aims to win by offering the lowest cost across the
industry.
11. A luxury watchmaker that targets a narrow segment of wealthy
buyers with unique products is using:
A. Focused cost leadership
B. Focused differentiation
C. Industry-wide differentiation
D. Industry-wide cost leadership
ANSWER : B. Focused differentiation
It differentiates its product while concentrating on a narrow market
segment.
12. In Porter's value chain, which of the following is a primary activity?
A. Outbound logistics
B. Human resources management
C. Technology development
D. Firm infrastructure
ANSWER : A. Outbound logistics
Primary activities are inbound logistics, operations, outbound logistics,
marketing and sales, and service.
13. Switching costs help a firm gain competitive advantage by:
A. Reducing the firm's own operating expenses
B. Increasing the number of substitute products
C. Lowering barriers to entry
D. Making it expensive or inconvenient for customers to change to a
competitor
ANSWER : D. Making it expensive or inconvenient for customers to
change to a competitor
High switching costs lock customers in and reduce buyer power.
Page 4 of 53
CMIS 351 – MANAGEMENT INFORMATION SYSTEMS LATEST EXAM
QUESTIONS AND SOLUTIONS - VERIFIED ANSWERS | 2026/2027
CMIS_351_Management_Information_Systems
1. The five components of an information system are:
A. Hardware, software, data, procedures, and people
B. Data, information, knowledge, wisdom, and insight
C. Hardware, software, networks, managers, and customers
D. Input, processing, output, storage, and feedback
ANSWER : A. Hardware, software, data, procedures, and people
The five-component framework adds data, procedures, and people to the
technology elements of hardware and software.
2. Raw facts that have not yet been organized into a meaningful form
are called:
A. Wisdom
B. Knowledge
C. Information
D. Data
ANSWER : D. Data
Data are unprocessed facts; once given context and meaning they become
information.
Page 1 of 53
, Management Information Systems — CMIS 351
3. Which characteristic makes information most useful to a decision
maker?
A. It is stored only on paper
B. It is accurate, timely, relevant, and complete
C. It is produced in the largest possible volume
D. It is gathered from as many unrelated sources as possible
ANSWER : B. It is accurate, timely, relevant, and complete
Quality information must be accurate, timely, relevant, and sufficient for
the decision at hand.
4. A transaction processing system (TPS) is primarily used to:
A. Model complex what-if scenarios for analysts
B. Record the routine, day-to-day transactions of a business
C. Provide long-range strategic forecasts to executives
D. Replace human decision makers entirely
ANSWER : B. Record the routine, day-to-day transactions of a
business
A TPS captures and processes high-volume operational transactions such
as sales, payroll, and orders.
5. Which type of system provides senior executives with summarized,
graphical views of key organizational performance data?
A. Office automation system
B. Process control system
C. Executive support system (dashboard)
D. Transaction processing system
ANSWER : C. Executive support system (dashboard)
Executive support systems and dashboards present high-level KPIs for
strategic monitoring.
Page 2 of 53
, Management Information Systems — CMIS 351
6. A decision support system (DSS) is best suited to support which type
of decisions?
A. Decisions that require no data
B. Decisions made only by front-line clerks
C. Semi-structured decisions
D. Fully structured, routine decisions
ANSWER : C. Semi-structured decisions
A DSS combines models and data to help managers with problems that
are partly structured and partly judgment-based.
7. According to Moore's Law, the number of transistors on a chip:
A. Triples every decade
B. Doubles approximately every 18 to 24 months
C. Halves every year
D. Remains constant over time
ANSWER : B. Doubles approximately every 18 to 24 months
Moore's Law describes the rapid, roughly biennial doubling of transistor
density, driving lower computing costs.
8. Metcalfe's Law states that the value of a network:
A. Increases with the square of the number of users connected to it
B. Is unrelated to the number of users
C. Is fixed by the cost of its hardware
D. Decreases as more users join
ANSWER : A. Increases with the square of the number of users
connected to it
Each new user adds many potential connections, so network value grows
roughly as n squared.
9. In Porter's five forces model, which force describes the ability of
customers to drive prices down?
A. Threat of new entrants
B. Threat of substitutes
C. Bargaining power of buyers
D. Bargaining power of suppliers
ANSWER : C. Bargaining power of buyers
Buyer power reflects how much customers can pressure a firm on price,
quality, and terms.
Page 3 of 53
, Management Information Systems — CMIS 351
10. A company that sells generic products at the lowest price in an
industry is pursuing which competitive strategy?
A. Focus differentiation
B. Differentiation
C. Market diversification
D. Cost leadership
ANSWER : D. Cost leadership
Cost leadership aims to win by offering the lowest cost across the
industry.
11. A luxury watchmaker that targets a narrow segment of wealthy
buyers with unique products is using:
A. Focused cost leadership
B. Focused differentiation
C. Industry-wide differentiation
D. Industry-wide cost leadership
ANSWER : B. Focused differentiation
It differentiates its product while concentrating on a narrow market
segment.
12. In Porter's value chain, which of the following is a primary activity?
A. Outbound logistics
B. Human resources management
C. Technology development
D. Firm infrastructure
ANSWER : A. Outbound logistics
Primary activities are inbound logistics, operations, outbound logistics,
marketing and sales, and service.
13. Switching costs help a firm gain competitive advantage by:
A. Reducing the firm's own operating expenses
B. Increasing the number of substitute products
C. Lowering barriers to entry
D. Making it expensive or inconvenient for customers to change to a
competitor
ANSWER : D. Making it expensive or inconvenient for customers to
change to a competitor
High switching costs lock customers in and reduce buyer power.
Page 4 of 53
