Which of the following is not a rationale for regulation?
A) To redress the inequality of access to information by users
B) To protect users from fraudulent activities of insiders
C) To reduce the oversupply of information caused by excess user demand, because users do not have to pay for its cost
D) To enhance consistency and comparability of use of accounting methods

Question

Quizplus · Accepted Answer

The oversupply of information caused by excess user demand is not a rationale for regulation. In fact, regulation is often put in place to ensure that users have access to a sufficient amount of reliable information to make informed decisions. The other options, A, B, and D, are all valid rationales for regulation, such as ensuring equality of access to information, preventing fraud, and promoting consistency in accounting practices.

Which of the Following Is Not a Rationale for Regulation