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Sources and characteristics of information

Data and information can come from one of two different sources. What are these sources? Watch this video to learn more.

Data and information can come from one of two different sources – and both sources can generate data and information that falls into one of two categories. The Kaplan tutor introduces them in this video.

The two sources of data and information are internal sources and external sources.

  • Internal sources are those within the company or organisation – for instance, the sales department will produce sales figures that can then be compared against the budgeted sales figures to see how the company is doing against expectations.
  • External sources are those outside the company or organisation – for instance, the Office for National Statistics produces information about industry performance and inflation that the company might find useful.

The data and information that comes from internal and external sources can be either quantitative or qualitative.

  • Quantitative information deals with numbers and figures – it’s concrete data and information.
  • Qualitative information deals with less concrete, subjective information, such as opinions – but it can still be aggregated into quantitative information (for instance by working out how many customers are ‘very satisfied’ with the service they receive).
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Introduction to Business Budgeting

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