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Foundations of Business 6th Edition

Foundations of Business (6th Edition)

Book Edition6th Edition
Author(s)Hughes, Pride
PublisherCengage Learning
Section 15-1: How Can Information Reduce Risk When Making a Decision?
Section 15-2: What Is a Management Information System?
Section 15-3: How Do Employees Use a Management Information System?
Section 15-4: Why Accounting Information Is Important
Section 15-5: The Accounting Equation and the Balance Sheet
Section 15-6: The Income Statement
Section 15-7: The Statement of Cash Flows
Section 15-8: Evaluating Financial Statements
End of Chapter
Social Media Exercise
Building Team Skills
Researching Different Careers
Chapter 15, Section 15-1, Concept Check, Exercise 01
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In your own words, describe how information reduces risk when you make a personal or work-related decision.


Decision making refers to problem solving activities which result to yielding solution to optimal and thus involves analysis of finite set of alternatives which are described in terms of evaluation behavior.


Description on how information reduces risk when you make a personal or work-related decision

  • Since information is the completion and the presentation of certain data for meaning purpose, it thus a resource for an employer like manager to operate and run a business.
  • In information and decision making ,managers tries to make a better and a meaningful decisions with availability of information and thus allows individuals to analyze risks and opportunities which can be encountered while taking a decision .Thus it helps to evaluate a situation from different perspective .
  • Thus relevant information helps in the reduction of dilemma and brings a clear picture about the matter and also any decision made with information is unfair and thus being a gamble .Thus such decisions should be always an informed one .
  • Thus the more information result to less risk and brings better decision and also less information result to high risk and poor decisions .
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