DECA Hospitality Services Team Decision Making Practice Exam

Why do many businesses store information in a computerized database?

1. To limit access to information

2. To maintain client lists

3. To promote team-based decision making

4. To enhance physical document security

The correct answer is: To maintain client lists

Storing information in a computerized database is primarily done to maintain client lists effectively. A computerized database allows businesses to organize, manage, and retrieve large volumes of data efficiently, which is crucial for keeping track of client information. This practice enables businesses to easily access contact details, transaction histories, preferences, and other relevant data that can enhance customer service and marketing efforts. Moreover, having client lists in a computerized format simplifies data updates and makes it easier to perform analyses, generate reports, and customize communications based on the information stored. This centralized and organized approach can significantly improve the operational efficiency of the business and enhance the overall customer relationship management process. While other choices might highlight aspects of data management, the primary goal of maintaining client lists is what underscores the importance of utilizing computerized databases.