Why Is Information Strategically Important for Organizations

question 23

Multiple Choice

Why is information strategically important for organizations?

• A) Information can be used to obtain first-mover advantage.
• B) Information is derived from perceived knowledge, which limits its availability.
• C) Information cannot be used as a medium of exchange.
• D) Information creates suboptimization opportunities.
• E) All of these are examples of why information is strategically important for organizations.

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Definitions:

Cash Payments Journal

A financial journal that records all cash outflows or payments made by a business, including expenses and asset purchases.

Purchases Journal

A record keeping document used to note all credit purchases of inventory and other items made by a company.

Establishment of Responsibility

An internal control principle focusing on assigning specific responsibilities to particular employees to reduce errors and fraud.

Segregation of Duties

An internal control measure where no single individual is given too much responsibility in areas of financial reporting, transaction processing, or asset management to prevent fraud and errors.