What does a transaction processing system do with incoming data?
AIt publishes the data on a public website
BIt discards the data once a report is printed
CIt prepares the raw data for storage in a database
DIt converts the data into a strategic forecast
Answer & Solution
Correct answer: C. It prepares the raw data for storage in a database
1. The integrated information system of a firm starts with its transaction processing system.
2. That system receives raw data from internal and external sources.
3. It prepares those data for storage in a database that becomes the central information resource of the company.
4. Forecasting is the job of the management support systems built on top of it.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 13 "Using Technology to Manage Information", section 13.3 Transaction Processing Systems_
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