Consumers Union is a nonprofit organization that provides information and counsel on consumer goods and services. A major part of its function is the testing of different brands of consumer products that are purchased on the open market and then the reporting of the results of the tests in Consumer Reports, a monthly publication. Examples of the types of products it tests are middle-sized automobiles, residential dehumidifiers, flat-screen TVs, and boys
Solution
a.
The assurance services provided by a consumer union to provide quality assurance results for various consumer products is indeed commendable, as it provides a good source of information to the consumers and helps them in overcoming the information risk of overcoming the wrong commodity.
The services of a consumer union are similar to what a CPA professional provides to his or her clients. The following points show this similarity:
b. Information risk is the risk that information might turn out to be inaccurate, as a result of which, the business decision based on said information would be incorrect or misleading.
As far as consumers of automobile products are concerned, they may face the information risk in the following areas:
c. It is therefore very important for us to understand why this information risk arises and to identify the causes of information risk.
From the viewpoint of automobile buyer, all of the above discussed points would equally apply.
d. Information risk can be reduced though the following means. Let us throw light upon three important ways of reducing information risk.
The buyers of automobile should try to bear the above points in order to reduce the information risk.
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Consumers Union is a nonprofit organization that provides information (1).docx
1. Consumers Union is a nonprofit organization that provides information and counsel on consumer
goods and services. A major part of its function is the testing of different brands of consumer
products that are purchased on the open market and then the reporting of the results of the tests in
Consumer Reports, a monthly publication. Examples of the types of products it tests are middle-
sized automobiles, residential dehumidifiers, flat-screen TVs, and boys
Solution
a.
The assurance services provided by a consumer union to provide quality assurance results for
various consumer products is indeed commendable, as it provides a good source of information
to the consumers and helps them in overcoming the information risk of overcoming the wrong
commodity.
The services of a consumer union are similar to what a CPA professional provides to his or her
clients. The following points show this similarity:
b. Information risk is the risk that information might turn out to be inaccurate, as a result of
which, the business decision based on said information would be incorrect or misleading.
As far as consumers of automobile products are concerned, they may face the information risk in
the following areas:
c. It is therefore very important for us to understand why this information risk arises and to
identify the causes of information risk.
From the viewpoint of automobile buyer, all of the above discussed points would equally apply.
d. Information risk can be reduced though the following means. Let us throw light upon three
important ways of reducing information risk.
The buyers of automobile should try to bear the above points in order to reduce the information
risk.
