Information Systems and Computer Applications CLEP Prep Practice Exam

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What is the purpose of an ERP system?

  1. To automate data entry

  2. To store customer data

  3. To analyze user interaction

  4. To integrate multiple business functions

The correct answer is: To integrate multiple business functions

An ERP system (Enterprise Resource Planning) is designed to integrate and streamline various business functions, such as accounting, supply chain management, human resources, and customer relationship management. This is achieved by combining all of these processes into a single system, allowing for seamless communication and data sharing between different departments. Options A, B, and C are incorrect because they only address individual functions, while an ERP system is meant to unite and manage multiple business processes.

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