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

Which of the following best describes an Executive Information System?

1. A detailed operational tool

2. An interactive management decision tool

3. A basic data entry system

4. A comprehensive IT infrastructure

The correct answer is: An interactive management decision tool

An Executive Information System (EIS) is designed specifically to support senior management and facilitate strategic decision-making. It focuses on summarizing and presenting critical data in a way that allows executives to quickly understand the organization's performance and make informed decisions. The interactive nature of an EIS enables users to analyze data from various sources, often in real time, allowing for dynamic reporting and trend analysis. This system distinguishes itself from operational tools, which typically handle day-to-day processes and are more focused on detailed tasks rather than high-level strategic insights. Unlike basic data entry systems that focus on inputting information without analytical capabilities, an EIS emphasizes synthesis and presentation of data in an approachable format. Additionally, while a comprehensive IT infrastructure might support various systems across an organization, it does not specifically cater to the needs of executives in decision-making like an Executive Information System does.