Final answer:
The true statement about master data is that it represents entities such as customers and vendors. Master data is crucial non-transactional information that remains constant over time and enables business process steps.
Step-by-step explanation:
The statement that master data represent entities such as customers and vendors is true. Master data is a core set of information that is essential and non-transactional in nature. This data generally remains stable over time and includes details about customers, products, employees, vendors, and more. Contrary to this, master data is not a consequence of the execution of process steps; instead, it enables process steps in business operations. Master data are used throughout an organization to provide a consistent reference for business processes, and they form the backbone of an enterprise's information landscape.