Final answer:
B. False. The database component of an information system can generate valuable business intelligence by accessing both internal and external data sources.
Step-by-step explanation:
The correct answer is False. The database component of an information system can generate valuable business intelligence by accessing both internal and external data sources. While internal data, such as sales records and customer data, can provide insights into the organization's operations, accessing external data such as market trends, competitor analysis, and customer behavior can enhance the organization's understanding of the industry and help make informed business decisions.
For example, if a company only analyzes its own internal data, it may miss out on important market changes or emerging trends that could impact its business. By considering external data sources, the company can gain a more comprehensive and accurate picture of the business landscape.
In addition, organizations can also benefit from big data, which involves analyzing vast amounts of data from various sources to identify patterns, trends, and insights. This requires accessing external data to supplement the organization's internal data.