You are planning to replace all the hubs used on your corporate network with switches. Which of the following statements is true when this is done?
  1. Switch operates at a layer which is lower than where the hub operates.
  2. Switch increases the number of collision domains.
  3. Switch decreases the number of collision domains.
  4. Switch operates at a layer that is higher than where the hub operates.
Explanation
Answer: B - When hubs are the replaced with switches, the number of collision domains increase.

Key Takeaway: When a hub receives a packet, it transmits the packet to all the other PCs on the network. If two or more PCs on the network try to send packets at the same time, a collision is said to occur. A hub connected to multiple hosts is a part of a single collision domain. However, in a switch, each port creates its own collision domain.
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