Question

Value of Information"

• Firms realize that in order to make money, they have to invest money. This can be attributed to the information that the firm relies on. As discussed in the text, there are seven characteristics of useful information. From the first e-Activity and assuming that you are new CFO of Strayer University, identify the top-three characteristics you would rely on the most for improving the profitability of the firm. Provide an example of how each characteristic would directly help the firm in terms of profitability.
• On the other hand, public and private firms are accountable to a wide range of regulators and stakeholders. Of the seven characteristics, identify the top three that would be applicable to meeting the needs of regulators and stakeholders. Provide an example of how each characteristic would directly help the firm in terms of meeting the needs of these key regulators and stakeholders.

Answer 1

As per the best of my knowledge Top 3 characheristics of information needs to improve profitability and of the firm and reporting to stake holders for thier decision making are:

1. Accurate information

2. Timely information

3. Comparable information

1. Accurate : An information should be accurate to take decision on investment, howmuch investment to be made and what is the return to be expected and what is the time frame to return the investment and profit. More accurate information towards investment will helps to take appropirate decision on the investment to all the stake holders.

2. Timely information: Time of decision will deside the success in business and opportunity cost. Timely information helps timely decision. All stake holders will look in to various opportunities for investment and decision in investing particular investment always desided by timely information. late information leeds lose of opportunities.

3. Comparable informaiton: Any investment decision takes place only with better profits and best returns. To decide better profiatablility and returns needs comparision. Comparision proves best in investment and Comparable information will helps decision making in investment. This compairsion 2 types internal and external. Internal comparision helps to take decision for stake holders to decide profitable areas of investment and external infomation leads to take decision in best opportunites.

Thanks