Blockchain Applications Across Key Industry Sectors BBLC Practice Questions (Page 9)

Questions 41–45

1. 41application · medium

   A factoring company has suffered losses because the same invoice was financed by two different lenders. The company wants to prevent this double financing and also provide regulators with a clear record that each invoice was financed only once. Which blockchain-based control is most effective?

   • AUse a public blockchain to record the full text of every invoice.
   • BRely on the original exporter to certify that each invoice is financed only once.
   • CKeep a private list of financed invoices in each lender's internal database and reconcile monthly.
   • DRegister a cryptographic hash of each invoice on a shared permissioned blockchain, and require lenders to check the registry before financing.
   Reveal Solution Discussion Select an answer first
2. 42foundation · easy

   What is a key benefit of digitizing a bill of lading on a blockchain?

   • AIt makes the document publicly visible to anyone on the internet
   • BIt allows multiple parties to securely access and verify the document in real time
   • CIt eliminates the need for any form of document verification
   • DIt automatically transfers ownership of the goods without any legal process
   Reveal Solution Discussion Select an answer first
4. 43application · medium

   A trade finance consortium wants to reduce the risk of fraudulent commodity warehouse receipts being used to secure multiple loans. The consortium also wants to provide regulators with a clear record of each receipt's ownership and pledge status. Which blockchain-based control is most effective?

   • AUse a shared spreadsheet to track warehouse receipts and their pledges.
   • BRely on each warehouse to certify that it has not issued duplicate receipts.
   • CIssue digital warehouse receipts as unique tokens on a permissioned blockchain, and record each pledge to a lender as a transfer of control.
   • DUse a public blockchain to record the full text of each warehouse receipt.
   Reveal Solution Discussion Select an answer first
5. 44foundation · easy

   What is the primary benefit of using blockchain for supply chain traceability?

   • AProviding an immutable record of a product's journey from origin to consumer
   • BEliminating the need for any quality checks
   • CReducing the physical size of products
   • DAutomatically ordering new inventory when stock runs low
   Reveal Solution Discussion Select an answer first
6. 45expert · hard

   A global food company must comply with new regulations requiring full traceability of produce from farm to shelf within 24 hours. The company has thousands of smallholder farmers who lack digital infrastructure, and the supply chain includes multiple intermediaries. The company also needs to provide auditors with a tamper-proof record. Which approach best balances traceability, farmer participation, and auditability?

   • AMaintain a centralized database managed by the company and update it based on paper records from farmers.
   • BUse a public blockchain to record all traceability data so that anyone can verify the supply chain.
   • CRequire all farmers to use a desktop-based ERP system to enter data directly into the blockchain.
   • DDeploy a permissioned blockchain where each intermediary records batch movements, and farmers use a simple mobile app to register harvest data.
   Reveal Solution Discussion Select an answer first