Test Bank
Chapter 1: Digital Transformation Disrupts Companies, Competition, and
Careers Locally and Globally
AP
Multiple Choice
1. In the early stages of a startup like Uber, valuation is based heavily on the company’s
________.
EX
a. technology
b. present value
c. growth potential
d. assets
SO
Answer: C
Difficulty: Medium
Section Reference: Opening Case
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
LU
AACSB: Technology
2. ________ is an easy-to-read, often single-page, real-time user interface, showing a graphical
presentation of the current status and historical trends of an organization’s key performance
TI
indicators to enable instantaneous and informed decisions to be made.
a. Predictions
b. Dashboards
O
c. Digital models
d. Real-time reports
N
Answer: B
Difficulty: Easy
Section Reference: Technology Mega Trends
S
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
COVID-19 is accelerating digital transformation.
AACSB: Technology
1
,3. A top concern of well-established corporations, global financial institutions, born-on-the-
Web retailers, and government agencies is how to design their digital business models in
order to do all of the following, except:
a. Deliver an incredible customer experience
b. Improve profitability
c. Implement cloud computing
d. Increase market share
AP
Answer: C
Difficulty: Medium
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
EX
and sustainability.
AACSB: Analytic skills
4. In the digital (online) space, there is a strong relationship between the quality of a firm's
SO
________, which in turn increases revenue.
a. mobile apps and business transactions
b. IoT capabilities and KPIs
c. business model and marketing efforts
d. customer experience and loyalty
LU
Answer: D
Difficulty: Hard
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
TI
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology
O
5. Market conditions and technological innovations that are propelling the explosion of on-
demand and shared services include all the following except:
N
a. smartphone-connected consumers
b. private data centers
c. simple and secure purchasing flows
S
d. location-based services
Answer: B
Difficulty: Medium
Section Reference: Doing Business in the On-Demand and Sharing Economy
2
,Learning Objective: Define the differences between the on-demand and sharing economies and the
six business objectives IT should focus on to enhance organizational performance, growth, and
sustainability.
AACSB: Technology
6. _____ is a company’s core strategy for making a profit. It defines the products and/or
services it will sell, its target market, costs associated with doing business, and the
AP
company’s ongoing plans for achieving its goals.
a. Business model
b. Website
c. Data analytics
d. Technology stack
EX
Answer: A
Difficulty: Easy
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
SO
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology
7. Machine-to-machine (M2M) technology enables sensor-embedded products to share reliable
LU
real-time data ________.
a. over short distances
b. via radio signals
c. using cloud services
TI
d. via databases
Answer: B
Difficulty: Hard
O
Section Reference: Technology Mega Trends
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
N
COVID-19 is accelerating digital transformation.
AACSB: Reflective thinking skills
S
8. An estimated ________ % of big data are unstructured.
a. 25 to 30
b. 33 to 66
c. 50 to 75
d. 80 to 90
3
, Answer: D
Difficulty: Medium
Section Reference: Technology Mega Trends
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
COVID-19 is accelerating digital transformation.
AACSB: Reflective thinking skills
AP
9. All of the following are examples of the influence of social, mobile, analytics, and cloud
technologies except ________.
a. Connections and feedback via social networks have changed the balance of
EX
influence.
b. Customers expect to use location-aware services, apps, alerts, social networks,
and the latest digital capabilities at work and outside work.
c. Customer loyalty and revenue growth depend on a business’ ability to offer
unique customer experiences that wow customers more than competitors can.
SO
d. Consumers are less likely to trust tweets from ordinary people than
recommendations made by celebrity endorsements.
Answer: D
Difficulty: Hard
Section Reference: Social–Mobile–Analytics–Cloud (SMAC) Model
LU
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
COVID-19 is accelerating digital transformation.
AACSB: Reflective thinking skills
TI
10. Which of the following guide the process of planning, acquiring, building, modifying, and
interfacing with deployed IT resources in a single department within an organization?
O
a. Legacy systems
b. IT architectures
c. Data analytics
N
d. Technology stack
Answer: B
S
Difficulty: Hard
Section Reference: Introduction
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology
4
Chapter 1: Digital Transformation Disrupts Companies, Competition, and
Careers Locally and Globally
AP
Multiple Choice
1. In the early stages of a startup like Uber, valuation is based heavily on the company’s
________.
EX
a. technology
b. present value
c. growth potential
d. assets
SO
Answer: C
Difficulty: Medium
Section Reference: Opening Case
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
LU
AACSB: Technology
2. ________ is an easy-to-read, often single-page, real-time user interface, showing a graphical
presentation of the current status and historical trends of an organization’s key performance
TI
indicators to enable instantaneous and informed decisions to be made.
a. Predictions
b. Dashboards
O
c. Digital models
d. Real-time reports
N
Answer: B
Difficulty: Easy
Section Reference: Technology Mega Trends
S
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
COVID-19 is accelerating digital transformation.
AACSB: Technology
1
,3. A top concern of well-established corporations, global financial institutions, born-on-the-
Web retailers, and government agencies is how to design their digital business models in
order to do all of the following, except:
a. Deliver an incredible customer experience
b. Improve profitability
c. Implement cloud computing
d. Increase market share
AP
Answer: C
Difficulty: Medium
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
EX
and sustainability.
AACSB: Analytic skills
4. In the digital (online) space, there is a strong relationship between the quality of a firm's
SO
________, which in turn increases revenue.
a. mobile apps and business transactions
b. IoT capabilities and KPIs
c. business model and marketing efforts
d. customer experience and loyalty
LU
Answer: D
Difficulty: Hard
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
TI
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology
O
5. Market conditions and technological innovations that are propelling the explosion of on-
demand and shared services include all the following except:
N
a. smartphone-connected consumers
b. private data centers
c. simple and secure purchasing flows
S
d. location-based services
Answer: B
Difficulty: Medium
Section Reference: Doing Business in the On-Demand and Sharing Economy
2
,Learning Objective: Define the differences between the on-demand and sharing economies and the
six business objectives IT should focus on to enhance organizational performance, growth, and
sustainability.
AACSB: Technology
6. _____ is a company’s core strategy for making a profit. It defines the products and/or
services it will sell, its target market, costs associated with doing business, and the
AP
company’s ongoing plans for achieving its goals.
a. Business model
b. Website
c. Data analytics
d. Technology stack
EX
Answer: A
Difficulty: Easy
Section Reference: Disruptive Digital Business Models
Learning Objective: Define the differences between the on-demand and sharing economies and
SO
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology
7. Machine-to-machine (M2M) technology enables sensor-embedded products to share reliable
LU
real-time data ________.
a. over short distances
b. via radio signals
c. using cloud services
TI
d. via databases
Answer: B
Difficulty: Hard
O
Section Reference: Technology Mega Trends
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
N
COVID-19 is accelerating digital transformation.
AACSB: Reflective thinking skills
S
8. An estimated ________ % of big data are unstructured.
a. 25 to 30
b. 33 to 66
c. 50 to 75
d. 80 to 90
3
, Answer: D
Difficulty: Medium
Section Reference: Technology Mega Trends
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
COVID-19 is accelerating digital transformation.
AACSB: Reflective thinking skills
AP
9. All of the following are examples of the influence of social, mobile, analytics, and cloud
technologies except ________.
a. Connections and feedback via social networks have changed the balance of
EX
influence.
b. Customers expect to use location-aware services, apps, alerts, social networks,
and the latest digital capabilities at work and outside work.
c. Customer loyalty and revenue growth depend on a business’ ability to offer
unique customer experiences that wow customers more than competitors can.
SO
d. Consumers are less likely to trust tweets from ordinary people than
recommendations made by celebrity endorsements.
Answer: D
Difficulty: Hard
Section Reference: Social–Mobile–Analytics–Cloud (SMAC) Model
LU
Learning Objective: Describe how IT is disrupting the way that companies operate, the IT
megatrends that are driving organizational performance, growth, and sustainability and how
COVID-19 is accelerating digital transformation.
AACSB: Reflective thinking skills
TI
10. Which of the following guide the process of planning, acquiring, building, modifying, and
interfacing with deployed IT resources in a single department within an organization?
O
a. Legacy systems
b. IT architectures
c. Data analytics
N
d. Technology stack
Answer: B
S
Difficulty: Hard
Section Reference: Introduction
Learning Objective: Define the differences between the on-demand and sharing economies and
the six business objectives IT should focus on to enhance organizational performance, growth,
and sustainability.
AACSB: Technology
4
