Briefly Explain the Four Factors That Determine the Usefulness of Information

question 6

Essay

Briefly explain the four factors that determine the usefulness of information to a manager and define real-time information.

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Definitions:

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Semiannual Interest

Interest that is paid or calculated twice a year, often used in bond payments.

Compounded Annually

This term describes interest on an investment that is calculated once a year, where the interest added also earns interest in subsequent years.

Withdrawals

Money taken out from a business by its owners for personal use.