Which of the Following Statements Is True About the Factors

question 20

Multiple Choice

Which of the following statements is true about the factors affecting the usefulness of information?

• A)Irrelevant information is useless and may actually hurt the performance of a busy manager who has to spend valuable time determining whether information is relevant.
• B)Managers constantly have access to complete information.
• C)Accuracy and reliability seldom determine the quality of information.
• D)Real-time information is information that reflects changes in business conditions that have occurred in the past.
• E)In today's rapidly changing world, the need for timely information has decreased.

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Definitions:

Compound Interest

The addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest, making the sum grow at a faster rate than simple interest.

Earnings Rate

The rate at which a company or investment is generating income, typically expressed as a percentage of the investment or capital employed.

Inflation

A period when prices in general are rising and the purchasing power of money is declining.

Price Levels

General price indices reflecting the overall movement of prices within an economy over a period of time, affecting purchasing power and inflation rates.