Which of the following statements about VLANs is true?

VLANs, or Virtual Local Area Networks, are indeed important tools in network design that allow for the isolation of network traffic. This isolation is crucial for improving security because it segments a physical network into multiple logical networks. Each VLAN can have its own security policies, ensuring that sensitive data is separated from non-sensitive data, thus minimizing the risk of unauthorized access or data breaches. Furthermore, VLANs also improve performance by reducing broadcast domains, leading to more efficient network traffic management.

By segmenting network traffic, VLANs also allow for better control and monitoring of data flows and can help in managing bandwidth more effectively. They provide flexibility in network design, allowing organizations to group devices by function or department regardless of their physical locations.

The other choices do not accurately reflect the role or benefits of VLANs. For instance, the suggestion that VLANs are only necessary for large organizations overlooks their value for smaller setups as well. Additionally, VLANs do not reduce the need for switches; in fact, they often require Layer 2 switches that support VLAN tagging for proper functionality. Lastly, VLANs generally do not increase latency; rather, they can contribute to a more efficient network which may lead to lower latency in some scenarios.