1.  The answer to question 1 in the right hand margin at the top of page 53.  Major Business functions are Sales, Service, Manufacturing, Shipping, Receiving, and Accounting.  In some businesses, such as software and Pharmaceutical companies, R&D would be a major business function.  Listing 

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4. Your answer implies that prototypes are always enhanced and refined to become the production system.  Sometimes, once users agree on the scope of the system, the prototype is thrown away and the production system is built using a different technology that can scale up to production volumes.