What is the purpose of a business glossary in data governance?

• A. To standardize data terms and definitions across the organization
• B. To store customer contact information
• C. To track software licenses
• D. To measure data throughput

Answer: (A)

A business glossary in data governance is about creating a common, authoritative set of definitions for business terms used across the organization. This shared vocabulary ensures that when people describe data, reports, or analytics, they’re using the same meanings, which reduces misinterpretation and supports consistent data quality, metadata management, and compliance. It underpins data lineage, governance rules, and clear communication between data producers, stewards, and consumers, making analytics and reporting more reliable.

The other options don’t fit this purpose. Storing customer contact information is a data storage task and a data element, not a governance function. Tracking software licenses is about asset management, not establishing shared data terminology. Measuring data throughput is an IT performance metric, not about defining and standardizing business terms.