Week 4.1 (MC) PDF

**1. Which of the following best describes the role of analysis in blockchain deployment?** A\) Enforcing rules for decision-making authority within the blockchain network. B\) Evaluating the risks of decentralizing decision-making processes. C\) Identifying network needs, interdependencies, and...

**1. Which of the following best describes the role of analysis in blockchain deployment?** A\) Enforcing rules for decision-making authority within the blockchain network. B\) Evaluating the risks of decentralizing decision-making processes. C\) Identifying network needs, interdependencies, and participant concerns. D\) Establishing the specific governance mode to be adopted. **Correct Answer**: C **2. In which scenario is the chief mode most effective as a blockchain governance structure?** A\) Managing a blockchain that includes competitors and suppliers in a collaborative framework. B\) Coordinating processes among departments in a large corporation with strict internal requirements. C\) Facilitating decision-making across multiple organizations where control is shared equally. D\) Providing hierarchical governance for public and open blockchain networks. **Correct Answer**: B **3. What is the primary risk of transitioning from a custodian governance mode to a consortium governance mode?** A\) Lack of transparency between participating organizations. B\) Increased operational inefficiencies due to centralized decision-making. C\) Reduced trust between participants due to the absence of shared authority. D\) Potential inclusion of competitors and reduced individual control. **Correct Answer**: D **4. Which governance mechanism primarily addresses the allocation of tasks and responsibilities among blockchain participants?** A\) Control B\) Coordination C\) Incentives D\) Trust **Correct Answer**: B **5. How does the augmented governance framework differ from automated governance?** A\) Augmented governance relies solely on human decision-making, whereas automated governance is algorithm-driven. B\) Augmented governance combines algorithmic and human trust, whereas automated governance relies solely on algorithmic trust. C\) Augmented governance involves omnilateral coordination, whereas automated governance relies on hierarchical control. D\) Augmented governance is less cost-efficient than automated governance in high-transactivity networks. **Correct Answer**: B **6. In the context of digital governance, which of the following exemplifies actorithmic trust?** A\) Blockchain records being validated by a consensus algorithm. B\) A customer choosing an Airbnb property based on both reviews and platform algorithms. C\) A smart contract automating a payment after delivery confirmation. D\) A reputation-based system with no reliance on technology. **Correct Answer**: B **7. What is the primary benefit of isolating in blockchain governance strategies?** A\) Reducing internal dependencies to focus on external participants. B\) Establishing proprietary standards to maintain control and reduce reliance on external organizations. C\) Allowing fast integration of external partners into the blockchain network. D\) Providing decision-making authority to external suppliers for greater scalability. **Correct Answer**: B **8. How do cybernetic incentives differ from bureaucratic incentives in governance mechanisms?** A\) Cybernetic incentives are based on hierarchical rules, while bureaucratic incentives rely on algorithmic feedback. B\) Cybernetic incentives dynamically adjust rewards using feedback loops, whereas bureaucratic incentives rely on pre-established contracts. C\) Cybernetic incentives apply only to blockchain networks, while bureaucratic incentives apply to augmented systems. D\) Cybernetic incentives are participant-driven, while bureaucratic incentives depend on trust algorithms. **Correct Answer**: B **9. Which governance mode is most likely to face bureaucratic challenges in decision-making?** A\) Chief B\) Custodian C\) Consortium D\) Clan **Correct Answer**: C **10. What is the primary purpose of feedback loops in maintaining long-term alignment in blockchain networks?** A\) To reduce the need for trust mechanisms in decentralized networks. B\) To help participants adapt to changing governance structures and address evolving needs. C\) To prioritize algorithmic decision-making over human interactions. D\) To centralize control among dominant network participants. **Correct Answer**: B **11.** Streamline Co. has implemented a blockchain network for its supply chain, but some suppliers are hesitant to participate. These suppliers are concerned about sharing sensitive data with competitors who are also part of the network. Which governance mechanism can Streamline Co. use to build trust and address these concerns? A\) Coordination: Assigning specific roles and responsibilities to each supplier. B\) Control: Establishing immutable rules for data usage and access. C\) Incentives: Offering financial rewards for data-sharing compliance. D\) Loosening: Allowing suppliers to have full control over the data they share. **Correct Answer**: B **12.** A logistics company is considering adding new delivery partners to its blockchain network to improve last-mile delivery efficiency. These new partners have expressed interest but require time to adapt to the system. Which strategic move would best help the company integrate new partners? A\) Tightening: Centralizing decision-making to control the onboarding process. B\) Isolating: Restricting the blockchain to internal participants only. C\) Connecting: Extending the blockchain network to include external organizations. D\) Loosening: Sharing control with new partners immediately upon their entry. **Correct Answer**: C **13.** A ride-sharing platform uses an automated system to assign drivers to customers. Recently, the system failed during high-demand hours, leading to customer complaints. Management is considering changes to its governance approach. Which governance framework would be most effective in balancing automation with human intervention for better decision-making? A\) Automated governance B\) Analog governance C\) Augmented governance D\) Consortium governance **Correct Answer**: C **14.** A group of financial institutions is collaborating on a blockchain to streamline cross-border payments. One of the members is concerned that competitors could misuse the shared data for strategic advantage. What is the primary governance challenge in this scenario? A\) Coordination: Ensuring tasks are aligned among participants. B\) Trust: Building confidence in the system and participants. C\) Incentives: Providing rewards for compliance with rules. D\) Control: Allocating authority and protecting sensitive information. **Correct Answer**: D **15.** An e-commerce company has implemented a blockchain to allow customers to track their orders in real-time. However, some customers complain they still don't understand how the system benefits them. How can the company enhance customer trust and satisfaction using blockchain technology? A\) Provide clear communication about the blockchain's transparency benefits. B\) Increase automation to eliminate human errors in order tracking. C\) Share the blockchain's control with customers for more direct engagement. D\) Focus solely on delivery speed instead of real-time tracking features. **Correct Answer**: A