Which of the following is true of an ERP system?
A) It can only be used to store data about a company's resources.
B) Its usage makes hacking difficult and therefore enhances security.
C) It facilitates the flow of information among all the business functions within an organization.
D) Its usage is mandatory for ensuring the protection of customer data.
E) It does not facilitate the flow of information between a company and its suppliers.

Question

Quizplus · Accepted Answer

An ERP system facilitates the flow of information among all the business functions within an organization, improving communication and coordination between departments. It can also integrate data from external sources, such as suppliers and customers, to provide a more comprehensive view of the organization's operations. Option A is incorrect because an ERP system can store data about various aspects of a company's operations, such as financials, logistics, and human resources. Option B is incorrect because while an ERP system may have security features, it is not immune to hacking. Option D is incorrect because customer data can be protected through various means, such as firewalls and encryption, without the use of an ERP system. Option E is incorrect because an ERP system can facilitate the flow of information between a company and its suppliers by integrating data from their systems.

Which of the Following Is True of an ERP System