ACCA Strategic Business Leader (SBL) Practice Exam

How is big data characterized?

1. Significant growth in networked devices

2. Exponential growth of data from numerous sources

3. Persistent data management challenges

4. Large-scale government datasets

The correct answer is: Exponential growth of data from numerous sources

Big data is primarily characterized by the exponential growth of data generated from a multitude of sources. This includes data from social media interactions, online transactions, IoT devices, sensors, and various other forms of digital communications. The volume, velocity, and variety of this data are what define the phenomenon of big data, fundamentally altering how organizations analyze information and make decisions. Data growth is not just incremental; it is accelerating at a pace that traditional data processing tools and techniques can find challenging to manage. This rapid influx of information enables firms to derive insights and trends that were previously inaccessible, thus reshaping industries and creating new opportunities for innovation. While significant growth in networked devices and persistent data management challenges are related to the broader context of data and technology, they do not encapsulate the essence of what constitutes big data. Similarly, large-scale government datasets represent only a part of the overall landscape of big data and are not a defining characteristic on their own. It is the sheer volume and the rapid, diverse generation of data that truly characterize big data.