ITIL 4 Exam Questions with Complete
Answers
2) Which term describes the functionality offered by a service?
A. Cost
B. Utility
C. Warranty
D. Risk - Answer-A. Incorrect. Cost is "The amount of money spent on a specific activity
or resource." Ref 2.5.2
B. Correct. Utility is "The functionality offered by a product or service." Ref 2.5.4
C. Incorrect. Warranty is "Assurance that a product or service will meet agreed
requirements". Ref 2.5.4
D. Incorrect. A risk is "A possible event that could cause harm or loss, or make it more
difficult to achieve objectives". Ref 2.5.3
5) How do all value chain activities transform inputs to outputs?
A. By determining service demand
B. By using a combination of practices
C. By using a single functional team
D. By implementing process automation - Answer-A. Incorrect. Demand is the input to
the service value chain. Value chain activities "represent the steps an organization
takes in the creation of value. Each activity contributes to the value chain by
transforming specific inputs into outputs." Ref 4.5
B. Correct. "To convert inputs into outputs, the value chain activities use different
combinations of ITIL practices." Ref 4.5
C. Incorrect. It uses various resources from different practices when needed. "To
convert inputs into outputs, the value chain activities use different combinations of ITIL
practices (sets of resources for performing certain types of work), drawing on internal or
third-party resources, processes, skills, and competencies as required. Ref 4.5
D. Incorrect. The 'optimize and automate' guiding principle recommends that activities
should be automated where this is practical but the service value chain does not require
automation. "Technology should not always be relied upon without the capability of
human intervention, as automation for automation's sake can increase costs and reduce
organizational robustness and resilience." Ref 4.3.7
7) What is the starting point for optimization?
A. Securing stakeholder engagement
B. Understanding the vision and objectives of the organization
C. Determining where the most positive impact would be
,D. Standardizing practices and services - Answer-A. Incorrect. This is step 4 of the
principle 'optimize and automate': "Ensure the optimization has the appropriate level of
stakeholder engagement and commitment." Ref 4.3.7.1
B. Correct. The first step of the principle 'optimize and automate' is: "Understand and
agree the context in which the proposed optimization exists. This includes agreeing the
overall vision and objectives of the organization." Ref 4.3.7.1
C. Incorrect. This is step 2 of the principle 'optimize and automate': "Assess the current
state of the proposed optimization. This will help to understand where it can be
improved and which improvement opportunities are likely to produce the biggest
positive impact." Ref 4.3.7.1 D. Incorrect. This is step 3 of the principle 'optimize and
automate': "Agree what the future state and priorities of the organization should be,
focusing on simplification and value. This typically also includes standardization of
practices and services, which will make it easier to automate or optimize further at a
later point." Ref 4.3.7.1
8) Identify the missing words in the following sentence.
The purpose of the [?] is to ensure that the organization continually co-creates value
with all stakeholders in line with the organization's objectives.
A. 'focus on value' guiding principle
B. four dimensions of service management
C. service value system
D. 'service request management' practice - Answer-A. Incorrect. The 'focus on value'
guiding principle guides an organization to consider the needs of the service consumer.
It cannot ensure that the organization continually co-creates value with all stakeholders.
Ref 4.3.1
B. Incorrect. The four dimensions "represent perspectives which are relevant to the
whole SVS, including the entirety of the service value chain and all ITIL practices." They
do not ensure that the organization continually co-creates value with all stakeholders.
Ref 3 C. Correct. "The purpose of the SVS is to ensure that the organization continually
co-creates value with all stakeholders through the use and management of products
and services." Ref 4.1
D. Incorrect. The purpose of the 'service request management' practice is to "support
the agreed quality of a service by handling all pre-defined, user-initiated service
requests in an effective and user-friendly manner." It doesn't ensure that the
organization continually co-creates value with all stakeholders. Ref 5.2.16
10) Which joint activity performed by a service provider and service consumer ensures
continual value co-creation?
A. Service provision
B. Service consumption
C. Service offering
D. Service relationship management - Answer-A. Incorrect. Service provision is not a
joint activity; it is performed by a service provider. Ref 2.4.1
, B. Incorrect. Service consumption is not a joint activity; it is performed by a service
consumer. Ref 2.4.1
C. Incorrect. Service offering is not an activity; it is "A description of one or more
services, designed to address the needs of a target consumer group. A service offering
may include goods, access to resources, and service actions". Ref 2.4.1
D. Correct. Service relationship management is "Joint activities performed by a service
provider and a service consumer to ensure continual value co-creation based on agreed
and available service offerings". Ref 2.4.1
13) Which guiding principle emphasizes the need to understand the flow of work in
progress, identify bottlenecks, and uncover waste?
A. Focus on value
B. Collaborate and promote visibility
C. Think and work holistically
D. Keep it simple and practical - Answer-A. Incorrect. 'Focus on value' states that all
improvement work should deliver measurable value for customers and other
stakeholders, but it does not specifically highlight the need to understand the flow of
work, identify bottlenecks, and uncover waste. Ref 4.3.1
B. Correct. 'Collaborate and promote' visibility states "Insufficient visibility of work leads
to poor decision-making, which in turn impacts the organization's ability to improve
internal capabilities. It will then become difficult to drive improvements as it will not be
clear which ones are likely to have the greatest positive impact on results. To avoid this,
the organization needs to perform such critical analysis activities as: understanding the
flow of work in progress; identifying bottlenecks, as well as excess capacity; and
uncovering waste". Ref 4.3.4.3
C. Incorrect. 'Think and work holistically' states that the organization should work in an
integrated way on the whole, not just on the parts, but it does not specifically highlight
the need to understand the flow of work, identify bottlenecks, and uncover waste. Ref
4.3.5
D. Incorrect. 'Keep it simple and practical' states that the organization should use the
minimum number of steps, and eliminate steps that produce no useful outcome. This
does imply that you should uncover waste, but it does not specifically highlight the need
to understand the flow of work and identify bottlenecks. Ref 4.3.6
14) What is a means of enabling value co-creation by facilitating outcomes that
customers want to achieve?
A. A service
B. An output
C. A practice
D. Continual improvement - Answer-A. Correct. A service is "A means of enabling value
co-creation by facilitating outcomes that customers want to achieve, without the
customer having to manage specific costs and risks." Ref 2.3.1
B. Incorrect. An output is "A tangible or intangible deliverable of an activity." Ref 2.5.1
C. Incorrect. Practices are "Sets of organizational resources designed for performing
work or accomplishing an objective." Ref 4.1
Answers
2) Which term describes the functionality offered by a service?
A. Cost
B. Utility
C. Warranty
D. Risk - Answer-A. Incorrect. Cost is "The amount of money spent on a specific activity
or resource." Ref 2.5.2
B. Correct. Utility is "The functionality offered by a product or service." Ref 2.5.4
C. Incorrect. Warranty is "Assurance that a product or service will meet agreed
requirements". Ref 2.5.4
D. Incorrect. A risk is "A possible event that could cause harm or loss, or make it more
difficult to achieve objectives". Ref 2.5.3
5) How do all value chain activities transform inputs to outputs?
A. By determining service demand
B. By using a combination of practices
C. By using a single functional team
D. By implementing process automation - Answer-A. Incorrect. Demand is the input to
the service value chain. Value chain activities "represent the steps an organization
takes in the creation of value. Each activity contributes to the value chain by
transforming specific inputs into outputs." Ref 4.5
B. Correct. "To convert inputs into outputs, the value chain activities use different
combinations of ITIL practices." Ref 4.5
C. Incorrect. It uses various resources from different practices when needed. "To
convert inputs into outputs, the value chain activities use different combinations of ITIL
practices (sets of resources for performing certain types of work), drawing on internal or
third-party resources, processes, skills, and competencies as required. Ref 4.5
D. Incorrect. The 'optimize and automate' guiding principle recommends that activities
should be automated where this is practical but the service value chain does not require
automation. "Technology should not always be relied upon without the capability of
human intervention, as automation for automation's sake can increase costs and reduce
organizational robustness and resilience." Ref 4.3.7
7) What is the starting point for optimization?
A. Securing stakeholder engagement
B. Understanding the vision and objectives of the organization
C. Determining where the most positive impact would be
,D. Standardizing practices and services - Answer-A. Incorrect. This is step 4 of the
principle 'optimize and automate': "Ensure the optimization has the appropriate level of
stakeholder engagement and commitment." Ref 4.3.7.1
B. Correct. The first step of the principle 'optimize and automate' is: "Understand and
agree the context in which the proposed optimization exists. This includes agreeing the
overall vision and objectives of the organization." Ref 4.3.7.1
C. Incorrect. This is step 2 of the principle 'optimize and automate': "Assess the current
state of the proposed optimization. This will help to understand where it can be
improved and which improvement opportunities are likely to produce the biggest
positive impact." Ref 4.3.7.1 D. Incorrect. This is step 3 of the principle 'optimize and
automate': "Agree what the future state and priorities of the organization should be,
focusing on simplification and value. This typically also includes standardization of
practices and services, which will make it easier to automate or optimize further at a
later point." Ref 4.3.7.1
8) Identify the missing words in the following sentence.
The purpose of the [?] is to ensure that the organization continually co-creates value
with all stakeholders in line with the organization's objectives.
A. 'focus on value' guiding principle
B. four dimensions of service management
C. service value system
D. 'service request management' practice - Answer-A. Incorrect. The 'focus on value'
guiding principle guides an organization to consider the needs of the service consumer.
It cannot ensure that the organization continually co-creates value with all stakeholders.
Ref 4.3.1
B. Incorrect. The four dimensions "represent perspectives which are relevant to the
whole SVS, including the entirety of the service value chain and all ITIL practices." They
do not ensure that the organization continually co-creates value with all stakeholders.
Ref 3 C. Correct. "The purpose of the SVS is to ensure that the organization continually
co-creates value with all stakeholders through the use and management of products
and services." Ref 4.1
D. Incorrect. The purpose of the 'service request management' practice is to "support
the agreed quality of a service by handling all pre-defined, user-initiated service
requests in an effective and user-friendly manner." It doesn't ensure that the
organization continually co-creates value with all stakeholders. Ref 5.2.16
10) Which joint activity performed by a service provider and service consumer ensures
continual value co-creation?
A. Service provision
B. Service consumption
C. Service offering
D. Service relationship management - Answer-A. Incorrect. Service provision is not a
joint activity; it is performed by a service provider. Ref 2.4.1
, B. Incorrect. Service consumption is not a joint activity; it is performed by a service
consumer. Ref 2.4.1
C. Incorrect. Service offering is not an activity; it is "A description of one or more
services, designed to address the needs of a target consumer group. A service offering
may include goods, access to resources, and service actions". Ref 2.4.1
D. Correct. Service relationship management is "Joint activities performed by a service
provider and a service consumer to ensure continual value co-creation based on agreed
and available service offerings". Ref 2.4.1
13) Which guiding principle emphasizes the need to understand the flow of work in
progress, identify bottlenecks, and uncover waste?
A. Focus on value
B. Collaborate and promote visibility
C. Think and work holistically
D. Keep it simple and practical - Answer-A. Incorrect. 'Focus on value' states that all
improvement work should deliver measurable value for customers and other
stakeholders, but it does not specifically highlight the need to understand the flow of
work, identify bottlenecks, and uncover waste. Ref 4.3.1
B. Correct. 'Collaborate and promote' visibility states "Insufficient visibility of work leads
to poor decision-making, which in turn impacts the organization's ability to improve
internal capabilities. It will then become difficult to drive improvements as it will not be
clear which ones are likely to have the greatest positive impact on results. To avoid this,
the organization needs to perform such critical analysis activities as: understanding the
flow of work in progress; identifying bottlenecks, as well as excess capacity; and
uncovering waste". Ref 4.3.4.3
C. Incorrect. 'Think and work holistically' states that the organization should work in an
integrated way on the whole, not just on the parts, but it does not specifically highlight
the need to understand the flow of work, identify bottlenecks, and uncover waste. Ref
4.3.5
D. Incorrect. 'Keep it simple and practical' states that the organization should use the
minimum number of steps, and eliminate steps that produce no useful outcome. This
does imply that you should uncover waste, but it does not specifically highlight the need
to understand the flow of work and identify bottlenecks. Ref 4.3.6
14) What is a means of enabling value co-creation by facilitating outcomes that
customers want to achieve?
A. A service
B. An output
C. A practice
D. Continual improvement - Answer-A. Correct. A service is "A means of enabling value
co-creation by facilitating outcomes that customers want to achieve, without the
customer having to manage specific costs and risks." Ref 2.3.1
B. Incorrect. An output is "A tangible or intangible deliverable of an activity." Ref 2.5.1
C. Incorrect. Practices are "Sets of organizational resources designed for performing
work or accomplishing an objective." Ref 4.1
