Answer: inability to develop specialized applications for functional areas. (D)
Step-by-step explanation:
Small firms gather various forms of data, such as the financial information that are related to revenues and expenses, data about employees and customers. Traditional file organization has to do with the storage data in paper files within filing cabinets and folders.
The use of the traditional approach to filing processing leads to every functional area in the corporation to create specialized files and applications. Each application or file requires a unique data file which is usually a subset of the master file and this often leads to inconsistency, wasted storage resources, data redundancy, poor security and processing inflexibility.