Lesson 3.9.4

3.9.4 Assessing greater use of digital technology Quiz: AQA Business, Unit 9

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.9.4, Assessing greater use of digital technology: 20 multiple choice questions for the AQA Business (7132), Unit 9: Strategic methods: how to pursue strategies, written with Revision Ninja.

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The 20 questions

  1. What is automation in a business context?

    • Using machines, software or systems to carry out tasks that people previously performed by hand
    • Hiring temporary staff for short periods during the busiest parts of the year to meet peak demand
    • Allowing customers to place orders through a website at any time of the day or night for delivery
    • Storing large volumes of customer data in a central database that managers can search for patterns

  2. What is e-commerce?

    • The internal exchange of emails between departments within a single business during the working day
    • The electronic recording of stock levels in a warehouse using barcode scanners and handheld devices
    • The use of electronic payment cards to pay for goods in a physical shop on the high street
    • Buying and selling goods or services over the internet

  3. What is big data?

    • A government database that holds only the tax records of individual households in the country
    • Very large and varied sets of data, often from many sources, that can be analysed to find patterns
    • A printed report of the sales made by a business in a single month across all of its outlets
    • A single spreadsheet that contains the accounts of a business for one financial year and its budget

  4. What is data mining?

    • Searching large datasets to discover hidden patterns, trends and relationships that can inform decisions
    • Recording the basic accounts of a business by hand into a paper ledger at the end of each trading day
    • Copying customer lists from one database into another so that they can be used in a new marketing campaign
    • Extracting physical minerals from the ground in a mine so that a business can sell them to manufacturers

  5. Which of the following is a pressure to adopt digital technology?

    • A decision by the business to keep all of its records on paper, which is cheaper and easier to manage
    • A reduction in the number of competitors who use digital systems, which leaves the market less competitive
    • Competitors who gain cost or service advantages from digital systems and customers who expect online options
    • A fall in the number of customers who use the internet to search for products and services in the market

  6. Which is a value of digital technology to a business?

    • It has no effect on costs because digital systems always cost as much as the manual processes they replace
    • It removes all need for managers to make decisions, because systems can decide every issue automatically
    • It guarantees customer loyalty because customers never switch to a rival when a business uses digital systems
    • It can speed up processes, lower costs and provide better insight into customer behaviour

  7. A business finds that an online sale costs 2 pounds to process, but an in-store sale costs 6 pounds. What is the saving on 10,000 transactions moved online?

    • 20,000 pounds
    • 60,000 pounds
    • 80,000 pounds
    • 40,000 pounds

  8. A machine costing 90,000 pounds replaces three workers each paid 20,000 pounds a year. Ignoring running costs, what is the simple payback period?

    • 0.67 years
    • 1.5 years
    • 3 years
    • 4.5 years

  9. An online store receives 500 visits and makes 40 sales. What is the conversion rate?

    • 8%
    • 0.8%
    • 40%
    • 12.5%

  10. Which is the best example of data mining being used to inform marketing?

    • Holding a large meeting of managers to discuss the design of the firm's new logo and colour scheme
    • Sending the same email to every customer on a list without checking any information about their buying habits
    • Printing a leaflet with the same message for every household in a town regardless of past purchases
    • Analysing past purchases to identify groups of customers who respond to particular offers

  11. Which is a risk associated with the use of big data by a business?

    • Concerns about privacy and data protection, and the cost of keeping customer data secure
    • A guarantee that every customer will become loyal to the business, which causes it to lose market share
    • The removal of all legal obligations, because data held by firms is not regulated in any country
    • The certainty that all data will be accurate and complete for every decision the business makes

  12. Evaluate the case for a business investing heavily in automation.

    • Automation has no effect on the workforce because machines never replace any human task in any business
    • Automation only benefits the marketing function, so operations and finance managers can ignore it entirely
    • It can lower unit costs and improve consistency, but high upfront costs, skills needs and workforce effects must be managed
    • Automation always lowers costs immediately, so there is no need to consider any investment or any changes to staff

  13. How can digital technology change a business's operations function?

    • It has no effect on operations because technology only affects the marketing and finance departments of firms
    • It increases the time taken to produce goods, because digital systems always slow down production processes
    • It removes the need for any operations function, because customers can order and receive goods without any production
    • Real-time stock and production monitoring can reduce waste and improve scheduling

  14. Which of the following best describes a digital marketing approach?

    • Sending a letter to each customer once a year regardless of their past buying or interest in the firm
    • Printing one large poster and placing it in a single location in the town centre for the whole year
    • Relying only on word of mouth from existing customers with no advertising or online presence at all
    • Targeting adverts on social media and search platforms at specific customer groups

  15. Which factor is likely to limit the benefits of adopting digital technology?

    • A reduction in the need for investment because digital systems never require any upfront spending at all
    • A guarantee that every new system will work perfectly from the first day, with no adjustment needed
    • Skills gaps among staff and the time needed to integrate new systems with existing processes
    • An abundance of skilled staff who are already trained in every new digital system the firm adopts

  16. Why might a traditional retailer feel a threat from digital technology?

    • Digital technology has no effect on retail because all customers still prefer to shop in person each week
    • Digital technology only affects manufacturers, so retailers face no competitive change from it in any way
    • Online retailers are unable to reach customers outside their home country, so the threat is local only
    • Online competitors may offer lower prices and convenience that attract customers away from physical stores

  17. Which is an example of how digital technology can help a business's human resource function?

    • A requirement that all employees must work in the same location without any remote working options
    • Online recruitment and training systems that speed up hiring and development
    • A decision to stop all staff training so that money can be spent on new computer equipment for the firm
    • A policy of hiring only people who do not use digital devices so that staff are less distracted

  18. Which of these is a potential benefit of big data for a service business?

    • A removal of all competition, because only firms with big data can operate in the sector
    • A reduction in the need to understand customers, because data makes customer views unnecessary
    • A guarantee of profit, because data always reveals which services will sell in every future period
    • Better understanding of customer needs, allowing services to be tailored more closely

  19. A business's digital systems fail, halting online sales for several days. Which is the most accurate evaluation of the risk?

    • Digital systems never fail, so no risk assessment is necessary for any business that uses them in its operations
    • Dependence on digital systems creates vulnerability, so back-up and contingency planning are essential
    • This failure has no effect on the business because customers always wait patiently for online systems to return
    • The failure only affects the business's accounts, so sales and customer relationships are not at risk

  20. Evaluate the impact of digital technology on employment within a business.

    • Digital technology has no effect on employment, because staff are never replaced by systems in any business
    • Some jobs may be lost, but new roles can be created, so retraining and redeployment are important for managing the change
    • Digital technology always creates more jobs than it removes, so the business never needs to plan for any change
    • Digital technology only affects the jobs of senior managers, so most employees are unaffected by its adoption

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