CBA Technology & Digital Business Transformation 1 — Questions and Answers
Question 1: What is the primary benefit of cloud computing for small businesses?
- Eliminates the need for internet connectivity
- Reduces upfront IT infrastructure costs and enables scalable resource access (Correct answer)
- Guarantees 100% data security at all times
- Replaces all need for on-site employees
Correct answer: Reduces upfront IT infrastructure costs and enables scalable resource access
Cloud computing allows small businesses to access computing resources on a pay-as-you-go basis, significantly reducing capital expenditure on hardware and IT infrastructure.
Question 2: Which cybersecurity framework is widely recommended for small-to-medium businesses (SMBs) in the United States?
- ISO 27001
- PCI DSS
- NIST Cybersecurity Framework (Correct answer)
- HIPAA Security Rule
Correct answer: NIST Cybersecurity Framework
The NIST Cybersecurity Framework provides a flexible, cost-effective approach to managing cybersecurity risks and is widely recommended for SMBs due to its accessibility and scalability.
Question 3: In business technology, what does the acronym ERP stand for?
- Electronic Revenue Processing
- Expense Reduction Program
- External Reporting Protocol
- Enterprise Resource Planning (Correct answer)
Correct answer: Enterprise Resource Planning
ERP (Enterprise Resource Planning) is integrated software that manages core business processes such as accounting, procurement, HR, and supply chain in a unified system.
Question 4: A Customer Relationship Management (CRM) system is primarily designed to:
- Track and manage customer interactions and sales relationships (Correct answer)
- Manage supply chain logistics and inventory levels
- Automate financial reporting and tax filings
- Monitor employee performance and HR metrics
Correct answer: Track and manage customer interactions and sales relationships
A CRM system centralizes customer data and interaction history, helping businesses nurture relationships, improve sales processes, and enhance customer service.
Question 5: Which metric is most commonly used to evaluate the effectiveness of digital marketing campaigns?
- Gross profit margin
- Return on Investment (ROI) (Correct answer)
- Current ratio
- Accounts receivable turnover
Correct answer: Return on Investment (ROI)
ROI measures the revenue generated relative to the cost of digital marketing efforts, making it the most direct indicator of campaign effectiveness.
Question 6: Which statement best describes Software as a Service (SaaS)?
- Open-source software available for free community download
- Custom software built exclusively by an in-house development team
- A government program for subsidizing business software purchases
- Software delivered via the internet on a subscription basis without local installation (Correct answer)
Correct answer: Software delivered via the internet on a subscription basis without local installation
SaaS delivers software applications over the internet on a subscription model, eliminating the need for local installation and reducing IT maintenance burden for businesses.
Question 7: What is a key strategic advantage of implementing e-commerce for a small business?
- Guarantees higher profit margins than physical retail
- Eliminates the need for customer service staff
- Extends market reach beyond local geographic limitations (Correct answer)
- Removes the need for product inventory management
Correct answer: Extends market reach beyond local geographic limitations
E-commerce enables small businesses to sell beyond their local area, significantly expanding their potential customer base and revenue opportunities.
CBA Technology & Digital Business Transformation 1
What is the primary benefit of cloud computing for small businesses?