Final answer:
The statement that master data represents entities associated with various processes, such as buying and selling activities, is true. Master data maintains consistency and accuracy across different areas of an organization, streamlining operational and analytical tasks.
Step-by-step explanation:
Master data does indeed represent entities associated with various processes such as buying materials from vendors and selling materials to customers. This is because master data is a central set of data that is essential and shared across the different functional areas of an organization. It encompasses static reference data that can include vendor data, customer data, product data, and more. This data is crucial for ensuring consistency and accuracy in transactional processes and in the generation of analytics and reports.
So the statement is True. Master data facilitates effective business processes through consistent, standardized data and is used for both operational and analytical purposes. For instance, having accurate vendor information ensures that purchase orders are processed efficiently and that supplies are replenished in a timely manner. Similarly, having accurate customer data helps ensure that orders are fulfilled and shipped correctly, enhancing customer satisfaction.