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ERPs typically utilize a flat files to facilitate data sharing for transaction processing.

a)True
b)False

1 Answer

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Final answer:

ERPs do not typically use flat files for data sharing in transaction processing; they use sophisticated relational databases that provide real-time, efficient data management suitable for complex organizational needs.

Step-by-step explanation:

Enterprise Resource Planning (ERP) systems are designed to use integrated and relational databases for efficient and real-time data sharing, management, and transaction processing. The use of relational databases allows ERPs to handle complex data structures and relationships, making it possible for different modules (such as finance, sales, inventory, etc.) to access and update shared data concurrently.

Flat file systems, on the other hand, store data in plain text files and are generally not equipped to support the dynamic data interactions required by ERPs.

By employing a relational database, ERPs can ensure data integrity, reduce data redundancy, and provide a more streamlined approach to multidimensional data analysis that is necessary for transaction processing within an organization.

Therefore, The statement that ERPs typically utilize flat files to facilitate data sharing for transaction processing is false.

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