Future Business Leaders of America (FBLA) Business Management Practice Test

An interactive tool that provides senior managers with critical business information is known as what?

1. Management information system

2. Decision-support system

3. Executive information system

4. Performance monitoring system

The correct answer is: Executive information system

An executive information system (EIS) is specifically designed to provide senior managers with critical business information in an interactive manner. It is tailored to present high-level data and insights that are essential for decision-making at the executive level. This system aggregates and summarizes vast amounts of data from various sources, enabling executives to monitor performance, understand trends, and identify areas that need attention. An EIS typically features user-friendly dashboards and visualizations that allow executives to quickly grasp key performance indicators and other significant metrics relevant to the organization's strategy and goals. The focus on summarization and ease of access makes it particularly valuable for senior management, who often need to make strategic decisions quickly and require summarized data rather than detailed datasets. In contrast, while management information systems and decision-support systems also play important roles in information management, they serve different functions. Management information systems typically provide routine operational data necessary for day-to-day management, whereas decision-support systems focus on analytics and scenario analysis for specific decisions. Performance monitoring systems could emphasize tracking of specific metrics but may not offer the same breadth of strategic insights tailored for high-level executives as an EIS does.