C724 -Study Guide Question and
answers already passed 2025/2026
What are the 6 components of Information Systems? - correct answer ✔1. Hardware
2. Software
3. Data
4. Network
5. People
6. Processes
Describe the following systems and how they can be used by businesses to improve performance:
EIS
DSS
MIS
TPS - correct answer ✔Executive Information Systems - Senior level management uses it to aid in
decision-making at the strategic level
Decision Support System - Middle level management uses it to aid in decision making (makes it for you)
Management Information System - Lower level management uses it to create reports for higher ups
Transaction Processing System - Used by line level to collect, store, process transaction data
In what ways do information systems help improve efficiency and effectiveness? - correct answer
✔Efficiency - streamlined business processes
Effectiveness - more productive workforce
Describe the differences between information technology (IT) and information systems (IS)? - correct
answer ✔IT - Hardware, software, network, data
, IS - All of IT + people + processes
Identify the 6 major reasons firms invest in information systems. - correct answer ✔1. Improve
operations
2. Improve innovation
3. Build customer service
4. Improve decision-making
5. Increase competitive advantage
6. Build relationships with suppliers
What is data, information, and knowledge? - correct answer ✔Data - Information that is put into the
system
Information - The result of processing data
Knowledge - Intellectual capital
What are examples of how the following functional areas utilize Information Systems:
Human Resources
Production and Operations
Accounting & Finance
Sales & Marketing - correct answer ✔HR - Training, EE records
Production - Inventory, manufacturing
Accounting - Cash flow, AP / AR, payroll
Sales - Marketing mix, customer profiling, sales analysis
Describe Porter's 5 Forces and how to combat these forces? - correct answer ✔1. New Threats - obtain
patents
2. Substitution Threat - make it unique
answers already passed 2025/2026
What are the 6 components of Information Systems? - correct answer ✔1. Hardware
2. Software
3. Data
4. Network
5. People
6. Processes
Describe the following systems and how they can be used by businesses to improve performance:
EIS
DSS
MIS
TPS - correct answer ✔Executive Information Systems - Senior level management uses it to aid in
decision-making at the strategic level
Decision Support System - Middle level management uses it to aid in decision making (makes it for you)
Management Information System - Lower level management uses it to create reports for higher ups
Transaction Processing System - Used by line level to collect, store, process transaction data
In what ways do information systems help improve efficiency and effectiveness? - correct answer
✔Efficiency - streamlined business processes
Effectiveness - more productive workforce
Describe the differences between information technology (IT) and information systems (IS)? - correct
answer ✔IT - Hardware, software, network, data
, IS - All of IT + people + processes
Identify the 6 major reasons firms invest in information systems. - correct answer ✔1. Improve
operations
2. Improve innovation
3. Build customer service
4. Improve decision-making
5. Increase competitive advantage
6. Build relationships with suppliers
What is data, information, and knowledge? - correct answer ✔Data - Information that is put into the
system
Information - The result of processing data
Knowledge - Intellectual capital
What are examples of how the following functional areas utilize Information Systems:
Human Resources
Production and Operations
Accounting & Finance
Sales & Marketing - correct answer ✔HR - Training, EE records
Production - Inventory, manufacturing
Accounting - Cash flow, AP / AR, payroll
Sales - Marketing mix, customer profiling, sales analysis
Describe Porter's 5 Forces and how to combat these forces? - correct answer ✔1. New Threats - obtain
patents
2. Substitution Threat - make it unique
