Chapter 1: Doing Business in Digital Times

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Chapter 1: Doing Business in Digital Times

Test Bank

Multiple Choice

• Food manufacturers must be able to trace all ingredients ________ in case of contamination

or recall.

• Along their supply chain
• In processed products they sell
• Imported from outside North America
• 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

• ________ are data visualizations that display the current status of key performance indicators

in easy-to-understand formats:

• Predictions
• Dashboards
• Digital models
• 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

• 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:

• Deliver an incredible customer experience
• Improve profitability
• Implement cloud computing
• Increase market share

(Information Technology for Management Digital Strategies for Insight, Action, and Sustainable Performance 10e Turban Volonino Wood) (Test Bank all Chapters) 1 / 4

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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

• Forrester research repeatedly confirms there is a strong relationship between the quality of a

firm's ________, which in turn increases revenue.

• Mobile apps and business transactions
• IoT capabilities and KPIs
• Business model and marketing efforts
• 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

• 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 ________.

• cloud computing
• private data centers
• data synchronization
• 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 2 / 4

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• 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 ________.

• weeks to minutes
• weeks to days
• months to weeks
• 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

• Machine-to-machine (M2M) technology enables sensor-embedded products to share reliable

real-time data ________.

• over short distances
• via radio signals
• using cloud services
• 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

• An estimated ________ % of big data are unstructured.

• 25
• 33
• 50
• 80

Answer: D

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: Reflective thinking skills 3 / 4

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• The field of ________ involves managing and analyzing massive sets of data for purposes

such as target marketing, trend analysis, and the creation of individually tailored products and services.

• Data science
• Cloud computing
• Machine-to-machine technology
• Business models

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: Reflective thinking skills

• All of the following are examples of the influence of social, mobile, and cloud technologies

except ________.

• Connections and feedback via social networks have changed the balance of

influence.

• Customers expect to use location-aware services, apps, alerts, social networks,

and the latest digital capabilities at work and outside work.

• Customer loyalty and revenue growth depend on a business’ ability to offer

unique customer experiences that wow customers more than competitors can.

• Consumers are less likely to trust tweets from ordinary people than

recommendations made by celebrity endorsements.

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: Reflective thinking skills

• Zipcar has pioneered the car rental by the hour business model. What technology enables

Zipcar to lease cars for short time spans to registered members?

• Social networks
• Mobiles
• Sensors
• Wearables

Answer: C

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