Final answer:
True, Transaction processing systems are indeed crucial for a business's operations, and a failure in TPS can have severe consequences for the firm and other linked entities.
Step-by-step explanation:
The statement "Transaction processing systems are so central to a business's operations that a failure of TPS for even a few hours can lead to destruction of that firm and other firms linked to it" is True.
Transaction processing systems (TPS) are essential for managing and processing a business's day-to-day transactions, such as sales, payments, and inventory. These systems ensure smooth and efficient operations by capturing, processing, and storing transaction data in real-time.
If a TPS fails, it can disrupt the flow of essential business operations and lead to significant problems. For example, a failure in recording sales transactions might result in stock outs or incorrect inventory levels. This could impact customer satisfaction, sales revenue, and the ability to meet production deadlines, eventually affecting the overall financial health of the business.
In addition, the impact of a TPS failure extends beyond the firm itself. If a business is a supplier or customer to other firms, a TPS disruption may disrupt their operations as well. For example, if a manufacturing company's TPS fails, it may not be able to order raw materials or fulfill orders from its customers, causing a ripple effect of disruption throughout the supply chain.