Information Is Said to Be Useful in Decision Making If

question 45

Essay

Information is said to be useful in decision making if it possesses three characteristics.
Required:
A. List the three characteristics of useful information.
B. Frequently, there is a conflict between two of the characteristics requested in part "A." Briefly explain what this conflict is.
C. What distinguishes relevant from irrelevant information?

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Definitions:

Security Sold Privately

A financial instrument, such as a stock or bond, that is sold directly to investors rather than through a public market.

Directly

Pertains to having an immediate connection or interaction without any intermediaries.

Indirectly

In a manner that is not directly done or expressed; involving an intermediary or being achieved through a secondary effect or means.

Debt Securities

Financial instruments that represent a loan made by an investor to a borrower, typically consisting of corporate bonds, government bonds, and other types of loans.