Question

C) The CPA may, in good faith, rely on information provided by the taxpayer without verifying the reliability of that information if reasonable inquiries are made where the information furnished appears to be incorrect.

Answer 1

To address imperfect information, a seller of goods can provide warranties, detailed product information, and excellent customer service to build trust. A job seeker can offer detailed resumes, references, and work samples, and suggest probationary periods to reassure potential employers.

Step-by-step explanation:

To reassure a possible buyer faced with imperfect information, a seller of goods can adopt several strategies. One effective approach is providing a comprehensive product warranty or guarantee, which assures the buyer of support in case the product does not meet their expectations.

Similarly, a seller of labor, like someone seeking employment, can reassure a potential employer by providing detailed resumes and cover letters that highlight relevant qualifications and experience. Providing references, work samples, or offering a probationary period can also help in confirming their capabilities and fit for the role.