Sumague Jericho G.

1) What are the four levels of activity in the pyramid representing the business
organization? Distinguish between horizontal and vertical flows of information.
- Business operation
- Operation Management
- Middle Management
- Top Management

Horizontal flow of information maintains operation level tasks.

Vertical flow of information can go downward when top management specifies goal,
strategy, and goals to the lower manager.

2) Discuss the differences between internal and external users of information and their
needs and demands on an information system.
- Internal users - accounting supplies managers and owners with significant financial
data that is useful for decision making. This type of accounting in generally referred
to as managerial accounting.
- External users - Typically called financial accounting, the record of a business’
financial history for use by external entities is used for many purposes. The external
users of accounting information fall into six groups; each has different interests in the
company and wants answers to unique questions.

3) What is system decomposition and subsystem interdependency? How are they related?
- interdependency? In system decomposition, the system is divided into smaller
subsystem parts. In system interdependency, all the parts must be working or else
the system will fail.
4) What are the characteristics of good or useful information?
- he seven characteristics of useful information are: relevant, reliable, complete,
verifiable, understandable, verifiable and accessible. These properties
are qualities that information should have to be useful in a business environment.
5) What are the fundamentals objective of all information systems?
-