What mechanisms are in place to guide the identification, measurement, categorization, and

communication of information to stakeholder and user? whats the difference between users
and stakeholder?
Identification
It is done by looking at stakeholders organizationally, geographically, or by involvement with
various project stages. Identifying those who are directly impacted by the project and those
who may be indirectly affected. Directly affected stakeholders cast a greater influence and
impact of a project compared to those indirectly affected.
Measurement
There are two ways for measurement
1. Consultative approach where the company consults stakeholders to determine the
forward direction.
2. Cooperative approach where joint action is taken by both project team and stake
holders
Categorization
There are two ways for categorization
1. Internal vs external
2. Voluntary vs involuntary
Communication of information
An organization must establish a formal information sharing mechanism under which the users
and stakeholders know the mechanism for sharing the information. This program can be a
mixture of internal and external information sharing mechanism.
Difference between Users and Stakeholders
A stakeholder has some interest in company, he can affect or affected by the company policies.
On the other hand a user is the one who uses the products of company.
What is the purpose of financial statements? would you want to produce them even if they
are not required, say , for entity tax reporting?
A financial statement shows the financial activity of a company. Although financial statements
are not required sometimes but it is prepared to represent the financial position and strength
of company.
How might market value of a firm differ from its intrinsic value?
Market value represents the current value of a company as shown by the company's stock
price. On the other hand intrinsic value is an estimate of the actual true value of a company,
regardless of market value.
Why are the most engineers likely to have experience with deterministic risk and not
probabilistic risk?
A deterministic system involves occurrence of events with known certainty. In a probabilistic
system occurrence of events cannot be perfectly predicted, hence most engineers have
experience with deterministic risk.