Final answer:
Knowing why personal information is being used is important because it clarifies business strategy, determines compliance with privacy regulations, and determines data storage needs.
Step-by-step explanation:
Knowing why you are using personal information is important because:
- It clarifies your business strategy: Understanding how and why personal information is being used can help businesses determine their overall strategy and make informed decisions.
- It will determine how you comply with privacy regulations: Knowing why personal information is being collected and how it will be used will help businesses ensure they are compliant with applicable privacy regulations.
- It will determine your data storage needs: Understanding the purpose of personal information will help businesses determine how much data needs to be stored and what measures are necessary to protect it.