Texas A&M University (TAMU) BUSN 101 Freshman Business Initiative Midterm Practice Test

Data becomes information when you add context, interpretation, and structure so the numbers or facts are meaningful and useful. In business terms, raw data like daily sales figures are just facts until you organize and present them in a way that answers questions or supports decisions. By summarizing trends, categorizing by product or time, and presenting it in a chart or report, you transform data into information that helps managers understand performance and act on it.

The other terms don’t fit because a value proposition is what you promise to deliver to customers, revenue is money earned from sales, and data refers to the raw facts before they’re processed. For example, turning a list of sales numbers into a monthly report that shows which products are selling best is turning data into information.