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A system boundary is a boundary that separates the internal components of a system from external entities. These entities can also be thought and be called as actors. In a use case diagram, a system boundary is represented by a rectangle that is drawn to enclosed the internal components of a system. Any entities outside the rectangle (i.e. the system boundary) are hence the actors. To get a better idea you may do a search of the following term in Google Images:

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Q: What is a system boundary?
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