Certified Professional Public Buyer (CPPB) Practice Test

What is a key benefit of technology in business?

1. Increased employee workload

2. Reduction in transparency

3. Improved management flows and risk reduction

4. Restriction of communication

The correct answer is: Improved management flows and risk reduction

The key benefit of technology in business is the improvement of management flows and the reduction of risks. Technology streamlines processes and enhances communication, leading to more efficient operations. By automating routine tasks, businesses can minimize human error, increase productivity, and make data-driven decisions that reduce uncertainties. Enhanced management flows refer to the smoother transfer of information and tasks between departments and teams, enabling better collaboration and decision-making. Furthermore, technology can bolster risk management by providing tools that allow for real-time monitoring and analysis. This enables businesses to identify potential issues early on and implement strategies to mitigate them, thus safeguarding resources and ensuring smoother operational continuity. This understanding contrasts with the other options; for example, an increased employee workload typically arises when technology is poorly implemented rather than being a benefit. Reduction in transparency is contrary to the aims of most technological advancements that seek to enhance visibility through data sharing and tracking. Lastly, the restriction of communication hampers collaboration and innovation, which technology is fundamentally designed to improve.