Week 3 (MC) Quiz on Blockchain and Governance PDF

**1. What is the primary feature of blockchain that ensures fairness and transparency in transactions?** **A)** Centralized control by a single authority **B)** Shared data that all participants agree upon (Correct) **C)** Use of traditional contracts for transactions **D)** Restricting data acc...

**1. What is the primary feature of blockchain that ensures fairness and transparency in transactions?** **A)** Centralized control by a single authority **B)** Shared data that all participants agree upon (Correct) **C)** Use of traditional contracts for transactions **D)** Restricting data access to specific participants **2. What role does governance play in interorganizational relationships?** **A)** Eliminates competition to ensure value creation **B)** Mediates between competition and cooperation (Correct) **C)** Centralizes all decision-making processes **D)** Focuses solely on minimizing risks **3. What is one limitation of traditional contracts in governance?** **A)** They are too adaptable for specific business needs **B)** They are incomplete and costly to enforce (Correct) **C)** They rely heavily on relational norms **D)** They eliminate the need for contingency planning **4. What is an example of "contingency planning" in governance?** **A)** Automatically paying a supplier after delivery verification **B)** Planning actions for "if-then" scenarios, such as delays (Correct) **C)** Using relational norms to resolve disputes **D)** Creating centralized agreements between competitors **5. What is the main benefit of blockchain disintermediation?** **A)** It increases intermediary transaction costs **B)** It reduces transaction costs by removing intermediaries (Correct) **C)** It centralizes all transactions in a single system **D)** It simplifies governance structures **6. What does "trustless trust" in blockchain mean?** **A)** Trust is built without relying on any specific actor (Correct) **B)** Trust is created through central authorities **C)** Trust depends on regulatory compliance **D)** Trust is only achieved in private blockchains **7. Which governance structure best supports compliance and minimizing risks?** **A)** Decentralized management **B)** Centralized management (Correct) **C)** Hybrid management **D)** Agile management **8. What is a key benefit of having a Single Source of Truth (SSOT)?** **A)** It provides flexibility for specific business needs **B)** It ensures consistency and accuracy across the organization (Correct) **C)** It eliminates the need for governance **D)** It decentralizes data access **9. What is the purpose of Multiple Versions of the Truth (MVOTs)?** **A)** To replace the need for an SSOT **B)** To tailor data to specific business needs (Correct) **C)** To ensure strict data standardization **D)** To remove data governance requirements **10. What happens without proper governance in data management?** **A)** Increased standardization of data **B)** Ambiguity in data definitions and rules (Correct) **C)** Reduction in data silos **D)** Enhanced real-time decision-making **11. Why is balancing SSOT and MVOTs important in data architecture?** **A)** To prioritize offensive strategies over defensive ones **B)** To provide both control and flexibility in data management (Correct) **C)** To shift entirely to decentralized governance **D)** To enhance compliance without flexibility **12. What is a drawback of relying only on MVOTs without SSOT?** **A)** Over-standardization of data **B)** Conflicting or redundant data across teams (Correct) **C)** Excessive focus on compliance and governance **D)** Loss of data flexibility **13. Which blockchain feature reduces opportunism in governance?** **A)** Disintermediation **B)** Trustless trust (Correct) **C)** Centralized control **D)** Hybrid networks **14. What does SSOT focus on in data architecture?** **A)** Flexible data transformation for business needs **B)** Standardizing data to ensure accuracy (Correct) **C)** Decentralized access to raw data **D)** Real-time customer insights **15. What is the purpose of governance mechanisms in blockchain systems?** **A)** To remove competitor involvement entirely **B)** To mediate between competition and cooperation (Correct) **C)** To standardize decentralized network structures **D)** To eliminate transparency in transactions **16. What is a key challenge when involving competitors in a blockchain network?** **A)** Weak network ties **B)** Risk of information misappropriation (Correct) **C)** Lack of sufficient data coverage **D)** Reduced transparency **17. What is the primary focus of a defensive data strategy?** **A)** Increasing customer satisfaction **B)** Ensuring compliance and minimizing risks (Correct) **C)** Boosting revenue **D)** Enhancing data agility **18. Which industry is most likely to prioritize a defensive data strategy?** **A)** Retail **B)** Financial services (Correct) **C)** E-commerce **D)** Entertainment **19. Why might decentralized data management be preferred for offensive strategies?** **A)** It enhances compliance with regulations **B)** It provides agility and customization for specific needs (Correct) **C)** It ensures consistency across departments **D)** It eliminates the need for feedback loops **20. What is the primary challenge of transforming data into actionable insights?** **A)** Lack of MVOTs **B)** Poor governance and feedback loops (Correct) **C)** Over-standardization of SSOT **D)** Inadequate storage infrastructure **21. What does good data governance ensure?** **A)** Flexibility in data definitions **B)** Clear and consistent data rules (Correct) **C)** Ambiguity in data architecture **D)** Elimination of all offensive strategies **22. What is a strategic trade-off in blockchain governance?** **A)** Prioritizing MVOTs over SSOT **B)** Balancing competitor involvement to manage risks (Correct) **C)** Eliminating all transaction costs **D)** Centralizing all blockchain nodes **23. What is one role of MVOTs in data strategy?** **A)** Replacing SSOT for flexible reporting **B)** Tailoring data for business-specific needs (Correct) **C)** Ensuring compliance with data governance **D)** Eliminating redundancies in data architecture **24. How does blockchain enable network-level governance?** **A)** Through intermediaries managing transactions **B)** By disintermediating and reducing transaction costs (Correct) **C)** By centralizing data in one authority **D)** By eliminating transparency in networks **25. What does decentralized data management aim to prevent?** **A)** Data silos and redundant systems (Correct) **B)** Compliance with strict regulations **C)** Uniform data policies across teams **D)** Real-time reporting issues **26. Which strategy uses predictive analytics to drive business growth?** **A)** Defensive strategy **B)** Offensive strategy (Correct) **C)** Hybrid strategy **D)** Governance-focused strategy **27. What is the relationship between data-driven decision-making and business performance?** **A)** No measurable impact **B)** Direct improvement in productivity and profitability (Correct) **C)** Decreased efficiency in high-regulation industries **D)** Limited to marketing functions **28. What is one role of feedback loops in governance?** **A)** To standardize data transformations **B)** To identify and correct errors in data processes (Correct) **C)** To create MVOTs for every department **D)** To prioritize offensive over defensive strategies **29. What is a primary advantage of blockchain-based governance?** **A)** Increased reliance on intermediaries **B)** Automated enforcement of rules (Correct) **C)** Higher transaction fees for participants **D)** Reduced network participation **30. What role does SSOT play in managing data for both defensive and offensive strategies?** **A)** Ensures flexibility and real-time adjustments **B)** Serves as the authoritative, consistent source of data (Correct) **C)** Eliminates the need for governance mechanisms **D)** Prioritizes decentralized data storage