Digital Business and Market Structures Quiz

Which of the following is NOT a type of business environment?

• Internal

• External

• Global

• Technological

Answer explanation

The correct answer is 'Global' because it is not typically classified as a type of business environment. The main types are 'Internal', 'External', and 'Technological', which directly influence business operations.

What does the 'P' in PESTLE analysis stand for?

• Promotion

• Price

• Product

• Political

Answer explanation

In PESTLE analysis, the 'P' stands for 'Political'. This framework helps organizations assess external factors, including political influences that can impact their operations and strategies.

Which market structure is characterized by many firms and differentiated products?

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

Answer explanation

Monopolistic Competition is characterized by many firms competing with differentiated products, allowing for some degree of market power. This contrasts with Perfect Competition, where products are identical.

Which of the following is a fixed cost in digital business?

• Advertising

• Rent

• Transaction fees

• Cloud storage

Answer explanation

Rent is a fixed cost because it remains constant regardless of business activity levels. In contrast, advertising, transaction fees, and cloud storage can vary based on usage or strategy.

Which revenue model is used by companies like Netflix and Adobe?

• Freemium model

• Subscription-based

• E-commerce sales

• Advertising revenue

Answer explanation

The subscription-based revenue model is used by companies like Netflix and Adobe, where customers pay a recurring fee for access to services or products, unlike freemium, e-commerce, or advertising models.

Which financial document shows a company's assets, liabilities, and equity?

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Profit & Loss Statement

Answer explanation

The Balance Sheet is the financial document that displays a company's assets, liabilities, and equity at a specific point in time, making it the correct choice. The other options focus on different aspects of financial performance.

Which funding option involves raising small amounts of money from a large number of people?

• Venture Capitalists

• Crowdfunding

• Angel Investors

• Bootstrapping

Answer explanation

Crowdfunding is a funding option that allows individuals to raise small amounts of money from a large number of people, typically via online platforms, making it distinct from other options like venture capitalists or angel investors.

Which law is concerned with the protection of personal data?

• Consumer Rights Law

• Employment Law

• Data Protection Law

• Intellectual Property Law

Answer explanation

Data Protection Law specifically addresses the safeguarding of personal data, ensuring individuals' privacy rights are upheld. This makes it the correct choice for the protection of personal data.

Which of the following is a cybersecurity risk?

• Sustainability

• AI Bias

• Diversity & Inclusion

• Phishing

Answer explanation

Phishing is a cybersecurity risk that involves tricking individuals into providing sensitive information, making it a direct threat to data security. The other options do not pertain to cybersecurity risks.

What is the main goal of digital transformation?

• Eliminate competition

• Reduce online presence

• Integrate digital technology to improve operations

• Increase physical store presence

Answer explanation

The main goal of digital transformation is to integrate digital technology to improve operations, enhancing efficiency and effectiveness in business processes.