ITIL4F Key Concepts of ITIL 4 Practice Question
A company launches a new mobile banking app. Customers can transfer money, view balances, and pay bills. The app is available 99.9% of the time during business hours. Which statement about the app's utility and warranty is TRUE?
⚠ Common exam trap
A common mix-up: candidates confuse utility with availability or reliability, mistakenly thinking utility is about 'how well' the service works rather than 'what' it does, leading them to reverse the definitions as in option A.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Utility is the ability to transfer money; warranty is the 99.9% availability
In ITIL 4, utility refers to the functionality offered by a service (what it does), while warranty refers to the assurance that the service will meet agreed-upon conditions such as availability, capacity, continuity, and security. The app's ability to transfer money, view balances, and pay bills represents its utility, and the 99.9% availability guarantee during business hours represents its warranty. Therefore, option B correctly pairs utility with functionality and warranty with availability.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Utility is the availability guarantee; warranty is the functionality
Why it's wrong here
This statement incorrectly reverses the ITIL 4 definitions of utility and warranty. Utility refers to the functionality of a service—what it does to support a customer's performance or remove constraints. Conversely, warranty provides assurance regarding the service's performance, such as its availability, capacity, and security, ensuring it is fit for use. Therefore, assigning availability (a warranty aspect) to utility and functionality (a utility aspect) to warranty is a fundamental misinterpretation.
- ✓
Utility is the ability to transfer money; warranty is the 99.9% availability
Why this is correct
This option correctly distinguishes between utility and warranty within the context of a mobile banking app. Utility represents the core functionality that enables value, such as the ability for customers to transfer money, directly supporting their objectives. Warranty, on the other hand, provides assurance that the service will meet agreed-upon requirements, with 99.9% availability being a prime example of a performance guarantee. Both aspects are crucial for delivering a valuable and reliable service experience.
- ✗
Only utility is used; warranty does not apply because the app works
Why it's wrong here
Both utility and warranty are integral components of any valuable service offering in ITIL 4. While the app 'working' primarily addresses its utility by performing its intended functions, warranty is essential for assuring that these functions are consistently available, secure, and performant. Dismissing warranty implies that the service's reliability and fitness for use are irrelevant, which is never the case for a critical application like mobile banking. A service must deliver both purpose and assurance to create true value for the consumer.
- ✗
Only warranty is used; utility does not apply because the app is available
Why it's wrong here
Utility is a fundamental aspect of any service, defining what the service does and how it supports the consumer's objectives. While the app being 'available' speaks directly to its warranty, an available service that lacks meaningful functionality provides no value. Without utility, the service would simply exist without purpose, failing to meet any customer needs or desired outcomes. Both utility and warranty are indispensable for a service to be considered valuable and effective.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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