This paper reports on the results of a study of business undergraduates undertaking an introductory unit in information systems. The focus of the study was to determine whether or not perceived knowledge of software, microcomputer experience, overall knowledge of computers, programming experience, and biological sex were predictors of computer anxiety. Analysis was carried out to assess the factor structure and the discriminatory power of the Computer Anxiety Rating Scale (CARS). Previous computer experience is an important element of success in undergraduate courses in information systems. Computer anxiety is definitely implicated in performance. Sex in general was not found to be a predictor of computer anxiety. However, females with low levels of perceived knowledge of software and limited experience with computers were predominant in the failing subgroup. The CARS appears to have a very high discriminatory capability. The CARS is easy to use and efficient. It can be used to identify and assist students who present with significant anxiety about using microcomputers.