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 mid-sized automobiles, residential dehumidifiers, flat-screen TVs, and blue jeans. Read the requirements. The four causes of information risk are essentially the same for a buyer of an automobile and a user of financial statements. Select the four causes of information risk for a buyer of an automobile and the application to the buyer of an automobile. (Click on the icon to view the list of applications.) Causes of Information Risks Application to the buyer of an automobile a. There is a conflict between the automobile buyer and the manufacturer. The buyer wants to buy a high quality product at minimum cost whereas the seller wants to maximize the selling price and quantity sold. b. There is a large amount of available information about automobiles that users might like to have in order to evaluate an automobile. Either that information is not available or too costly to obtain. c. In today's market, there are several financing options available at a low interest rate. d. The automobile industry is highly regulated and information is readily available. There is a large amount of available information about automobiles that users might like to have in order to evaluate an automobile. That information is readily available at a low cost. f. It is difficult for a user to obtain much information about either an automobile manufacturer or the automobile itself without incurring considerable cost. The automobile buyer does have the advantage of possibly knowing other users who are satisfied or dissatisfied with a similar automobile. g. The acquisition of an automobile is expensive and certainly a complex decision because of all the components that go into making a good automobile and choosing between a large