A Transaction Processing System (TPS) is primarily used to which function?

• A. Create new knowledge
• B. Support complex decision making
• C. Perform and record routine transactions
• D. Manage customer relationships

Answer: (C)

The main idea is that a Transaction Processing System handles day‑to‑day, routine business transactions from start to finish. It captures data, validates it, processes the transaction, updates the relevant records, and stores a reliable trail of the activity. This makes it ideal for performing and recording routine transactions—think sales orders, payroll runs, inventory updates, or payment receipts. The emphasis is on speed, accuracy, and auditable records for ongoing operations.

Other functions described by different systems aren’t about processing those routine transactions. Creating new knowledge is about turning data into insights, a role of knowledge management or analytics systems. Supporting complex decision making fits decision support or BI systems that analyze data for strategic choices. Managing customer relationships is the domain of CRM systems that track interactions and relationships with customers.