C724 (INFORMATION SYSTEMS
MANAGEMENT) – WGU. EXAM
QUESTIONS AND ANSWERS 2026
VERIFIED.
Executive information system - ANS A system that facilitates and supports senior managerial
decisions.
Data - ANS Unorganized data that lacks meaning.
Information - ANS Data that has been organized in a meaningful manner.
Information system - ANS An integrated network of components working together to convert
data into useful information; includes an input, a process, and an output; comprised of people,
processes, machines, and information technology.
Knowledge - ANS The practical application of information.
Data, Information, and Knowledge example - ANS Data: The number of people below the
poverty line in the region is 50,000.
Information: The number of people below the poverty line increases between 2010 and 2018.
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,Knowledge: The number of people below the poverty line has increased due to stagnating
wages and cuts to social programs.
Decision support system - ANS This system uses models and statistical analysis to help
decision makers solve problems
Management information system (MIS) - ANS Provides timely and accurate information that
enables managers to manage their departments more efficiently; analyzes performance.
Transaction processing system - ANS information system used for processing patient
admissions, employee time cards, and purchase orders
Information management - ANS The management of organizational processes and systems;
helps the organization reduce costs and adds value to products; helps the organization make
better managerial decisions; stores and processes data.
Information technology - ANS The use of computer and telecommunications systems for
storing, retrieving, and sending information; comprised of hardware, software, data, and
networks.
information technology management - ANS the management of hardware, software, data,
networks, and people that facilitate access to information and allow the organization to achieve
business objectives.
Strategic information system - ANS provide tools used by an organization to accomplish
specific tasks to gain competitive advantage.
Social Networking and interpersonal skills. - ANS Enhances interpersonal and relationship-
forming skills.
Porters 5 competitive forces - ANS Intensity competitive rivalry
bargaining power of customers
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, bargaining power of suppliers
threat of new entrants
threat of substitutes
Network economics (network-based strategy) - ANS the cost of adding another business
participant to a business venture is small, the potential gain is great.
Business ecosystems - ANS Network of businesses involved in delivering a product through
mutual cooperation.
Product differentiation (business strategy) - ANS offering a higher quality product to
differentiate from others in the market
growth (business strategy) - ANS adding new products or new enhancements to existing
products
Enterprise Resource Planning (ERP) - ANS Involves utilizing computer technology to link
various aspects of a business; a very complex resource planning system that spans the entire
business; companies often have difficulty implementing the system.
Customer Relationship Management (CRM) - ANS Allows for personalized communication to
customers.
Knowledge Management (KM) - ANS These systems provide tools to help manage
organizational knowledge and create value to meet business requirements and strategic goals.
chief executive officer (CEO) - ANS also called president or managing director, is responsible
for the success or failure of the company, creating the company culture, selecting the senior
management team, setting strategy and vision, and selecting projects to fund.
chief operations officer (COO) - ANS is the director of operations, responsible for the
oversight of internal operations on a day-to-day basis and for monitoring production quotas
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 28
MANAGEMENT) – WGU. EXAM
QUESTIONS AND ANSWERS 2026
VERIFIED.
Executive information system - ANS A system that facilitates and supports senior managerial
decisions.
Data - ANS Unorganized data that lacks meaning.
Information - ANS Data that has been organized in a meaningful manner.
Information system - ANS An integrated network of components working together to convert
data into useful information; includes an input, a process, and an output; comprised of people,
processes, machines, and information technology.
Knowledge - ANS The practical application of information.
Data, Information, and Knowledge example - ANS Data: The number of people below the
poverty line in the region is 50,000.
Information: The number of people below the poverty line increases between 2010 and 2018.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 28
,Knowledge: The number of people below the poverty line has increased due to stagnating
wages and cuts to social programs.
Decision support system - ANS This system uses models and statistical analysis to help
decision makers solve problems
Management information system (MIS) - ANS Provides timely and accurate information that
enables managers to manage their departments more efficiently; analyzes performance.
Transaction processing system - ANS information system used for processing patient
admissions, employee time cards, and purchase orders
Information management - ANS The management of organizational processes and systems;
helps the organization reduce costs and adds value to products; helps the organization make
better managerial decisions; stores and processes data.
Information technology - ANS The use of computer and telecommunications systems for
storing, retrieving, and sending information; comprised of hardware, software, data, and
networks.
information technology management - ANS the management of hardware, software, data,
networks, and people that facilitate access to information and allow the organization to achieve
business objectives.
Strategic information system - ANS provide tools used by an organization to accomplish
specific tasks to gain competitive advantage.
Social Networking and interpersonal skills. - ANS Enhances interpersonal and relationship-
forming skills.
Porters 5 competitive forces - ANS Intensity competitive rivalry
bargaining power of customers
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 28
, bargaining power of suppliers
threat of new entrants
threat of substitutes
Network economics (network-based strategy) - ANS the cost of adding another business
participant to a business venture is small, the potential gain is great.
Business ecosystems - ANS Network of businesses involved in delivering a product through
mutual cooperation.
Product differentiation (business strategy) - ANS offering a higher quality product to
differentiate from others in the market
growth (business strategy) - ANS adding new products or new enhancements to existing
products
Enterprise Resource Planning (ERP) - ANS Involves utilizing computer technology to link
various aspects of a business; a very complex resource planning system that spans the entire
business; companies often have difficulty implementing the system.
Customer Relationship Management (CRM) - ANS Allows for personalized communication to
customers.
Knowledge Management (KM) - ANS These systems provide tools to help manage
organizational knowledge and create value to meet business requirements and strategic goals.
chief executive officer (CEO) - ANS also called president or managing director, is responsible
for the success or failure of the company, creating the company culture, selecting the senior
management team, setting strategy and vision, and selecting projects to fund.
chief operations officer (COO) - ANS is the director of operations, responsible for the
oversight of internal operations on a day-to-day basis and for monitoring production quotas
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 28
