Question 1

Which of the following is an advantage to businesses of using digital communication?

Accepted Answer

Messages and data can be transmitted quickly

Answer

Not all areas may be connected to the internet

Answer

Regular training may be required to update employees on using digital communication

Answer

Can lead to communication overload

Question 2

A zoo uses Twitter to announce the birth of a baby elephant. Which of the following describes this method of digital communication?

Accepted Answer

Social media

Answer

Teleworking

Answer

Email

Answer

Video conferencing

Question 3

When information is shared electronically between computers it is best known as:

Accepted Answer

Digital communication

Answer

E-commerce

Answer

Teleworking

Answer

M-commerce

Question 4

Which of the following statements best describes the term e-commerce?

Accepted Answer

Buying and selling a product using electronic systems e.g. the internet

Answer

Buying and selling products via hand held devices e.g. smartphones

Answer

Communicating and sharing information electronically

Answer

Gathering, storing and processing information electronically

Question 5

Which of the following best describes the purpose of eBay?

Accepted Answer

To sell products, often second hand, to other people electronically

Answer

To develop business contacts

Answer

To provide an internet based photo sharing service

Answer

To provide a social networking service

Question 6

Which of the following stakeholders is most likely to use digital technology to look up payslip details?

Accepted Answer

Employees

Answer

Customers

Answer

Suppliers

Answer

Shareholders

Question 7

Which of the following is an advantage to a business that conducts the initial stages of the recruitment process on-line?

Accepted Answer

Recruitment costs can be reduced

Answer

Recruitment will be less effective

Answer

Recruitment will take longer

Answer

Recruitment costs will increase

Question 8

Which of the following is an example of an electronic payment system?

Accepted Answer

PayPal

Answer

Twitter

Answer

Instagram

Answer

eBay

Question 9

Which of the following is a disadvantage to businesses of using digital communication?

Accepted Answer

No guarantee that messages will be received or accessed

Answer

Teleconferencing is possible which can produce cost savings

Answer

Can be inexpensive to operate and is widely used

Answer

Storage costs are saved as data can be stored electronically

Question 10

Which of the following stakeholders is most likely to look up dividend payments on-line?

Accepted Answer

Shareholders

Answer

Customers

Answer

Employees

Answer

Suppliers

Question 11

Which of the following businesses uses e-commerce to sell groceries to customers?

Accepted Answer

Ocado

Answer

Three

Answer

Expedia

Answer

Waterstones

Question 12

Developments in communication technology have enabled some businesses to:

Accepted Answer

Reduce costs as more employees can now work from home

Answer

Reduce costs as wages are often higher overseas

Answer

Increase costs as wages are often lower overseas

Answer

Increase costs as more employees can now work from home

Question 13

In which of the following situations is a local doctor’s surgery most likely to use digital communication?

Accepted Answer

To post the new annual report on the website for shareholders

Answer

To text patients to remind them of appointments

Answer

To collect customer information via a loyalty card

Answer

To sell products to other people

Question 14

Which of the following is an advantage to businesses of using e-commerce?

Accepted Answer

Access to wider markets

Answer

Customer resistance

Answer

Increase in competition

Answer

Cost increases

Question 15

The development of digital technology has enabled employees to work from home. Which of the following terms best describes this system?

Accepted Answer

Teleworking

Answer

Part time working

Answer

Casual working

Answer

Fixed term contract

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