ISM 3011 Artificial Intelligence (AI) Exam | Latest 2026/2027 Update | Actual
Questions & Verified Answers With Detailed Rationales | Comprehensive Exam
Review | High-Yield PDF Study Guide
1. A student argues that data and information are the same thing. How would you correct them?
❖ Data are raw facts, while information is data that has been analyzed and given meaning by the
process component.
❖ Unlike data, information consists of facts that have been analyzed by the process component
2. A company wants to reduce operational costs by automating warehouse inventory tracking. This
represents which type of strategy?
❖ A bottom-line strategy focuses on improving efficiency and reducing costs, not generating new
revenue.
❖ False (it is bottom-line, not top-line)
3. An MIS professor states that useful information always guarantees successful decisions. Is this correct?
❖ Useful information improves decision quality but does not guarantee success due to other factors
like implementation.
❖ True (as per the provided statement that usefulness determines success of the information system)
4. A manager looks at a list of 10,000 sales transactions and feels overwhelmed. What is this list an
example of?
❖ Data, which consists of raw facts and by itself is difficult to use for making decisions.
❖ Data
5. A CFO needs to decide whether to issue new stock or take on debt. Which system supports this?
❖ A financial information system supports decisions about capital structure and portfolio
management.
❖ Financial information system
6. Two pizza shops on the same block keep offering "buy one get one free" deals. This is an example of:
❖ High rivalry among existing competitors when many competitors occupy the same marketplace
position.
❖ True
7. A database administrator writes SQL queries and manages user access but does not write business
application logic. Is this accurate?
❖ A database administrator manages data and access but is not primarily responsible for writing
entire systems; that is a developer.
, ❖ False
8. A restaurant owner uses software to track employee clock-in times and break schedules. Which
system is this?
❖ A personnel information system supports decisions related to scheduling and assigning
employees.
❖ Personnel information system
9. A company's internal employee portal uses web browsers but is only accessible from inside the office.
This is an example of:
❖ An intranet, which is a private network within an organization using Internet protocols.
❖ True (the statement says the main difference is public vs private, which is false because intranets
are private, internet is public)
10. A hospital integrates hardware, software, data, and staff to produce daily patient census reports. This
is a:
❖ Management information system, which integrates all these elements for decision-making.
❖ Management information system
11. A library's catalog system stores book titles, authors, and locations in interrelated files. This collection
is a:
❖ Database, which is the heart of an information system organizing facts in integrated files.
❖ Database
12. A startup analyzes its suppliers, customers, and potential new entrants using a framework from a
Harvard professor. This framework is:
❖ Porter's Five Forces Model for analyzing an organization and its marketplace position.
❖ Five Forces Model
13. A project manager hears a rumor that a competitor is about to launch a similar product. This rumor is
considered:
❖ Informal information, such as rumors and unconfirmed reports, useful when solving problems.
❖ Informal information
14. A logistics company needs to track shipments in real-time and reroute trucks due to weather. Which
system supports this?
❖ A logistics information system helps select transportation modes and manage deliveries.
❖ Selecting the best modes of transportation
15. A company decides to sell its existing software to international customers for the first time. This is a:
❖ Top-line strategy focusing on increasing revenue by selling existing products to new customers.
, ❖ Increasing revenue by selling existing products to new customers
16. A marketing manager wants to know if the FIS tracks the 4Ps. Is that correct?
❖ A financial information system focuses on financial data, not marketing mix elements like price,
promotion, place, and product.
❖ False
17. A cashier swipes items and the system immediately deducts inventory and records the sale. This
system is a:
❖ Transaction-processing system, which focuses on data collection and processing.
❖ They focus on data collection and processing
18. An investment advisor uses software to balance a client's portfolio across asset classes. Which system
is this?
❖ A financial information system supports determining portfolio structures.
❖ Determining portfolio structures
19. A university's internal faculty portal runs on web browsers but requires a VPN to access from home.
This is:
❖ An intranet, a network within an organization using Internet protocols and technologies.
❖ It is a network within an organization that uses Internet protocols and technologies
20. An LIS provides reports on transportation costs. Does it also provide employee demographic
statistics?
❖ A logistics information system does not focus on employee demographics; that is a personnel IS
function.
❖ False
21. An IS collects data from customer surveys (external) and sales records (internal). Is this good
practice?
❖ Yes, information systems should collect data from both external and internal sources based on
organizational objectives.
❖ True
22. A user can create spreadsheets and presentations but cannot install software or troubleshoot errors.
This user has:
❖ Computer literacy, which is skill in using productivity software like spreadsheets and
presentations.
❖ Computer literacy
23. Jack uses Word, Excel, PowerPoint, and knows basic internet terms. He has:
Questions & Verified Answers With Detailed Rationales | Comprehensive Exam
Review | High-Yield PDF Study Guide
1. A student argues that data and information are the same thing. How would you correct them?
❖ Data are raw facts, while information is data that has been analyzed and given meaning by the
process component.
❖ Unlike data, information consists of facts that have been analyzed by the process component
2. A company wants to reduce operational costs by automating warehouse inventory tracking. This
represents which type of strategy?
❖ A bottom-line strategy focuses on improving efficiency and reducing costs, not generating new
revenue.
❖ False (it is bottom-line, not top-line)
3. An MIS professor states that useful information always guarantees successful decisions. Is this correct?
❖ Useful information improves decision quality but does not guarantee success due to other factors
like implementation.
❖ True (as per the provided statement that usefulness determines success of the information system)
4. A manager looks at a list of 10,000 sales transactions and feels overwhelmed. What is this list an
example of?
❖ Data, which consists of raw facts and by itself is difficult to use for making decisions.
❖ Data
5. A CFO needs to decide whether to issue new stock or take on debt. Which system supports this?
❖ A financial information system supports decisions about capital structure and portfolio
management.
❖ Financial information system
6. Two pizza shops on the same block keep offering "buy one get one free" deals. This is an example of:
❖ High rivalry among existing competitors when many competitors occupy the same marketplace
position.
❖ True
7. A database administrator writes SQL queries and manages user access but does not write business
application logic. Is this accurate?
❖ A database administrator manages data and access but is not primarily responsible for writing
entire systems; that is a developer.
, ❖ False
8. A restaurant owner uses software to track employee clock-in times and break schedules. Which
system is this?
❖ A personnel information system supports decisions related to scheduling and assigning
employees.
❖ Personnel information system
9. A company's internal employee portal uses web browsers but is only accessible from inside the office.
This is an example of:
❖ An intranet, which is a private network within an organization using Internet protocols.
❖ True (the statement says the main difference is public vs private, which is false because intranets
are private, internet is public)
10. A hospital integrates hardware, software, data, and staff to produce daily patient census reports. This
is a:
❖ Management information system, which integrates all these elements for decision-making.
❖ Management information system
11. A library's catalog system stores book titles, authors, and locations in interrelated files. This collection
is a:
❖ Database, which is the heart of an information system organizing facts in integrated files.
❖ Database
12. A startup analyzes its suppliers, customers, and potential new entrants using a framework from a
Harvard professor. This framework is:
❖ Porter's Five Forces Model for analyzing an organization and its marketplace position.
❖ Five Forces Model
13. A project manager hears a rumor that a competitor is about to launch a similar product. This rumor is
considered:
❖ Informal information, such as rumors and unconfirmed reports, useful when solving problems.
❖ Informal information
14. A logistics company needs to track shipments in real-time and reroute trucks due to weather. Which
system supports this?
❖ A logistics information system helps select transportation modes and manage deliveries.
❖ Selecting the best modes of transportation
15. A company decides to sell its existing software to international customers for the first time. This is a:
❖ Top-line strategy focusing on increasing revenue by selling existing products to new customers.
, ❖ Increasing revenue by selling existing products to new customers
16. A marketing manager wants to know if the FIS tracks the 4Ps. Is that correct?
❖ A financial information system focuses on financial data, not marketing mix elements like price,
promotion, place, and product.
❖ False
17. A cashier swipes items and the system immediately deducts inventory and records the sale. This
system is a:
❖ Transaction-processing system, which focuses on data collection and processing.
❖ They focus on data collection and processing
18. An investment advisor uses software to balance a client's portfolio across asset classes. Which system
is this?
❖ A financial information system supports determining portfolio structures.
❖ Determining portfolio structures
19. A university's internal faculty portal runs on web browsers but requires a VPN to access from home.
This is:
❖ An intranet, a network within an organization using Internet protocols and technologies.
❖ It is a network within an organization that uses Internet protocols and technologies
20. An LIS provides reports on transportation costs. Does it also provide employee demographic
statistics?
❖ A logistics information system does not focus on employee demographics; that is a personnel IS
function.
❖ False
21. An IS collects data from customer surveys (external) and sales records (internal). Is this good
practice?
❖ Yes, information systems should collect data from both external and internal sources based on
organizational objectives.
❖ True
22. A user can create spreadsheets and presentations but cannot install software or troubleshoot errors.
This user has:
❖ Computer literacy, which is skill in using productivity software like spreadsheets and
presentations.
❖ Computer literacy
23. Jack uses Word, Excel, PowerPoint, and knows basic internet terms. He has:
