Even Though Primary Data Can Be Especially Valuable to an Individual

question 281

Multiple Choice

Even though primary data can be especially valuable to an individual firm, secondary data are often used because

• A) secondary data are much more up-to-date and tailored to a specific firm or industry.
• B) secondary data, although far more expensive, are also much more reliable.
• C) primary data are usually more costly and time-consuming to collect.
• D) primary data can be accessed by virtually anyone so the information generated loses much of its value.
• E) primary data are less fact and figure based; they are more subjective and therefore more vulnerable to misinterpretation.

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Definitions:

Capital Balance

The amount recorded in a shareholder's or partner's equity account, reflecting their investment in the business.

Full Time

Employment status characterized by working a minimum number of hours defined by the employer, typically involving benefits not offered to part-time employees.

Net Income

The net income is the final amount of profit a company makes after deducting all costs, taxes, and expenses from its total revenue.

Capital Balances

The amount of money that owners have invested in a firm plus any retained earnings or minus any losses.