ACCA Performance Management (F5) Certification Practice Exam

What defines an extranet?

1. An internal system for employee access only

2. A network that links organizations using internet technology

3. A standalone application for data sharing

4. A type of wireless communication

The correct answer is: A network that links organizations using internet technology

An extranet is defined as a network that links organizations using internet technology. This allows for controlled access to secure information and resources for external users, such as business partners, suppliers, or customers, while maintaining the security protocols associated with private networks. The essence of an extranet lies in its function to facilitate collaboration and communication between different organizations, extending the capabilities of an intranet (which is limited to internal users) to external users in a secure manner. It typically employs various internet technologies to ensure real-time data exchange and efficient integration of services across companies. The concept of using internet technology for connectivity among different organizational systems distinguishes an extranet from other network types, highlighting its purpose in fostering business relationships and enhancing operational efficiency.