Chapter 1: Doing Business in Digital Times
Test Bank
Multiple Choice
1. Food manufacturers must be able to trace all ingredients ________ in case of
contamination or recall.
a. Along their supply chain
b. In processed products they sell
c. Imported from outside North America
d. In perishable food they export
Answer: A
Difficulty: Medium
Section Reference: Chapter Snapshot and Opening Case
Learning Objective: Provide a real-world example of doing business in digital times.
AACSB: Use of information technology
2. ________ are data visualizations that display the current status of key performance
indicators in easy-to-understand formats:
a. Predictions
b. Dashboards
c. Digital models
d. Real-time reports
,Answer: B
Difficulty: Easy
Section Reference: Chapter Snapshot and Opening Case
Learning Objective: Provide a real-world example of doing business in digital times.
AACSB: Use of information technology
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
Answer: C
Difficulty: Medium
Section Reference: Every Business is a Digital Business
Learning Objective: Describe the use of digital technology in every facet of business and
how digital channels are being leveraged.
AACSB: Analytic skills
4. Forrester research repeatedly confirms there is a strong relationship between the
quality of a firm's ________, 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
,Answer: D
Difficulty: Hard
Section Reference: Every Business is a Digital Business
Learning Objective: Describe the use of digital technology in every facet of business and
how digital channels are being leveraged.
AACSB: Use of information technology
5. Enterprises can acquire the latest business apps and digital services as they are needed
and without large upfront investments by switching from owning IT resources to
________.
a. cloud computing
b. private data centers
c. data synchronization
d. machine-to-machine technology
Answer: A
Difficulty: Medium
Section Reference: Every Business is a Digital Business
Learning Objective: Describe the use of digital technology in every facet of business and
how digital channels are being leveraged.
AACSB: Use of information technology
, 6. Amazon Elastic Compute Cloud, known as EC2, eliminates the need to invest in
hardware up front, so companies can develop and deploy applications faster. EC2
reduces the time it takes to acquire server space from ________.
a. weeks to minutes
b. weeks to days
c. months to weeks
d. months to days
Answer: A
Difficulty: Medium
Section Reference: Every Business is a Digital Business
Learning Objective: Describe the use of digital technology in every facet of business and
how digital channels are being leveraged.
AACSB: Use of information technology
7. Machine-to-machine (M2M) technology enables sensor-embedded products to share
reliable real-time data ________.
a. over short distances
b. via radio signals
c. using cloud services
d. via databases
Answer: B
Difficulty: Hard
Section Reference: Every Business is a Digital Business
Learning Objective: Describe the use of digital technology in every facet of business and
how digital channels are being leveraged.
AACSB: Reflective thinking skills
Test Bank
Multiple Choice
1. Food manufacturers must be able to trace all ingredients ________ in case of
contamination or recall.
a. Along their supply chain
b. In processed products they sell
c. Imported from outside North America
d. In perishable food they export
Answer: A
Difficulty: Medium
Section Reference: Chapter Snapshot and Opening Case
Learning Objective: Provide a real-world example of doing business in digital times.
AACSB: Use of information technology
2. ________ are data visualizations that display the current status of key performance
indicators in easy-to-understand formats:
a. Predictions
b. Dashboards
c. Digital models
d. Real-time reports
,Answer: B
Difficulty: Easy
Section Reference: Chapter Snapshot and Opening Case
Learning Objective: Provide a real-world example of doing business in digital times.
AACSB: Use of information technology
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
Answer: C
Difficulty: Medium
Section Reference: Every Business is a Digital Business
Learning Objective: Describe the use of digital technology in every facet of business and
how digital channels are being leveraged.
AACSB: Analytic skills
4. Forrester research repeatedly confirms there is a strong relationship between the
quality of a firm's ________, 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
,Answer: D
Difficulty: Hard
Section Reference: Every Business is a Digital Business
Learning Objective: Describe the use of digital technology in every facet of business and
how digital channels are being leveraged.
AACSB: Use of information technology
5. Enterprises can acquire the latest business apps and digital services as they are needed
and without large upfront investments by switching from owning IT resources to
________.
a. cloud computing
b. private data centers
c. data synchronization
d. machine-to-machine technology
Answer: A
Difficulty: Medium
Section Reference: Every Business is a Digital Business
Learning Objective: Describe the use of digital technology in every facet of business and
how digital channels are being leveraged.
AACSB: Use of information technology
, 6. Amazon Elastic Compute Cloud, known as EC2, eliminates the need to invest in
hardware up front, so companies can develop and deploy applications faster. EC2
reduces the time it takes to acquire server space from ________.
a. weeks to minutes
b. weeks to days
c. months to weeks
d. months to days
Answer: A
Difficulty: Medium
Section Reference: Every Business is a Digital Business
Learning Objective: Describe the use of digital technology in every facet of business and
how digital channels are being leveraged.
AACSB: Use of information technology
7. Machine-to-machine (M2M) technology enables sensor-embedded products to share
reliable real-time data ________.
a. over short distances
b. via radio signals
c. using cloud services
d. via databases
Answer: B
Difficulty: Hard
Section Reference: Every Business is a Digital Business
Learning Objective: Describe the use of digital technology in every facet of business and
how digital channels are being leveraged.
AACSB: Reflective thinking skills
