BU 204
The Digital Firm & Business Communications
Midterms Exam Review (Qns & Ans)
2025
1. Which of the following best describes a digital firm?
- A. A company that uses the internet for all its business
operations
- B. A company that relies on digital processes for its core
business operations
- C. A company that sells digital products exclusively
- D. A company that provides digital marketing services
- ANS: B.
©/2025
, Rationale: A digital firm integrates digital processes into its
core business operations, improving efficiency, productivity, and
competitiveness.
2. What is a key characteristic of Enterprise Resource Planning
(ERP) systems?
- A. Single-function software for specific departments
- B. Decentralized data management
- C. Integration of various business processes
- D. External vendor dependency
- ANS: C.
Rationale: ERP systems integrate various business
processes into one unified system, enhancing data accuracy and
process efficiency.
Fill-in-the-Blank
3. Digital firms leverage ___ to enable real-time decision-
making.
- ANS: data analytics
Rationale: Data analytics allow firms to analyze large
volumes of data quickly, facilitating real-time, informed decision-
making.
©/2025
, 4. The process of automating repetitive tasks using software is
known as ___.
- ANS: robotic process automation (RPA)
Rationale: RPA utilizes software robots to automate
repetitive, rule-based tasks, increasing efficiency and reducing
human error.
True/False
5. Cloud computing allows digital firms to scale their IT
resources up or down easily.
- ANS: True
Rationale: Cloud computing provides scalability, enabling
firms to adjust their IT resources based on demand without
significant investment in hardware.
6. Digital firms face fewer cybersecurity threats compared to
traditional firms.
- ANS: False
Rationale: Digital firms often face more cybersecurity
threats due to their extensive use of digital technology and online
presence.
Multiple Response
©/2025
The Digital Firm & Business Communications
Midterms Exam Review (Qns & Ans)
2025
1. Which of the following best describes a digital firm?
- A. A company that uses the internet for all its business
operations
- B. A company that relies on digital processes for its core
business operations
- C. A company that sells digital products exclusively
- D. A company that provides digital marketing services
- ANS: B.
©/2025
, Rationale: A digital firm integrates digital processes into its
core business operations, improving efficiency, productivity, and
competitiveness.
2. What is a key characteristic of Enterprise Resource Planning
(ERP) systems?
- A. Single-function software for specific departments
- B. Decentralized data management
- C. Integration of various business processes
- D. External vendor dependency
- ANS: C.
Rationale: ERP systems integrate various business
processes into one unified system, enhancing data accuracy and
process efficiency.
Fill-in-the-Blank
3. Digital firms leverage ___ to enable real-time decision-
making.
- ANS: data analytics
Rationale: Data analytics allow firms to analyze large
volumes of data quickly, facilitating real-time, informed decision-
making.
©/2025
, 4. The process of automating repetitive tasks using software is
known as ___.
- ANS: robotic process automation (RPA)
Rationale: RPA utilizes software robots to automate
repetitive, rule-based tasks, increasing efficiency and reducing
human error.
True/False
5. Cloud computing allows digital firms to scale their IT
resources up or down easily.
- ANS: True
Rationale: Cloud computing provides scalability, enabling
firms to adjust their IT resources based on demand without
significant investment in hardware.
6. Digital firms face fewer cybersecurity threats compared to
traditional firms.
- ANS: False
Rationale: Digital firms often face more cybersecurity
threats due to their extensive use of digital technology and online
presence.
Multiple Response
©/2025
