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# Given the scarcity of quality professional service providers

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Given the scarcity of quality professional service providers  [#permalink]

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01 Apr 2015, 04:28
4
1
Question 1
00:00

based on 196 sessions

64% (03:17) correct 36% (03:06) wrong

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Question 2
00:00

based on 191 sessions

75% (01:18) correct 25% (01:49) wrong

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Question 3
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based on 190 sessions

57% (00:55) correct 43% (00:48) wrong

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Question 4
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based on 176 sessions

94% (00:54) correct 6% (01:04) wrong

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Question 5
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based on 159 sessions

87% (01:00) correct 13% (01:20) wrong

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Given the scarcity of quality professional service providers in most emerging markets around the world, it is hardly surprising that firms are branching out from their established trade to offer more comprehensive services, including those related to trades with which they have not previously been involved or possessed expertise. In some cases, firms that specialize in one area are partnering with firms in other areas to provide clients a more comprehensive service offering. For example, an international law firm with an office in an emerging market may partner with a local accounting firm to also offer accounting services to its clients on transactions for which it historically would have solely advised on legal issues. Still other firms are opting to develop related service offerings by either acquiring businesses with complementary services or hiring executives who can organically grow such divisions.

Realizing the convenience of having all professional advisors under the same roof, some clients in emerging markets are attracted to the idea of a one-stop shop for all their professional advisory needs. As such, many clients are quickly turning to these one-stop shops; however, in doing so, they often do not conduct proper due diligence, especially with regard to comparing the capabilities of these firms with those of competing service providers. Furthermore, some clients who have used the comprehensive suite of advisory offerings provided by such one-stop shops with regard to complex financial transactions have found that the services overall fail to meet their expectations. Specifically, clients have reported that they received unprofessional advice, due in large part to firms not having sufficient resources dedicated to their newly offered service areas to provide a level of thorough and detailed counsel that is able to be provided by stand-alone firms focused in a specific area. Moreover, clients make the assumption that communication among advisers in different areas will be enhanced when all advisors work for the same firm; however, it has been found that such synergies typically are non-existent, as the different departments operate under separate management teams without established communication protocols among their respective teams.

In addition to the enhanced convenience of one-stop shops, clients also are being attracted with financial incentive offers, whereby clients can enjoy a twenty-percent discount on total fees associated with work provided in relation to an initial transaction. Such discounts can be considerable as professional advisory fees in emerging markets generally are relatively expensive compared with those in other parts of the world, due in large part to the transaction complexities typically involved in such markets. Most clients assume that these discounts will continue to be offered; however, internal sources within the one-stop shops have indicated that discounts are currently being offered to attract new clients, but such offers will not likely continue to be extended after a loyal client base has been established. As such, discounts should not necessarily be the basis of decisions with regard to long-term engagement of professional advisors.

1. Which of the following is NOT mentioned in the passage as a possible negative result of using 'one-stop' professional service providers?

A. The potential for unprofessional advice is heightened.
B. Clients may not sufficiently explore alternative available service providers.
C. Accounting firms may lack sufficient expertise in working with law firms in some markets.
D. Expected enhancements in communication among advisors do not come to fruition.
E. Clients may incorrectly assume that initial cost-saving offerings will continue indefinitely.

2. It can be inferred from the passage that the increase in the number of advisory firms in emerging markets that offer comprehensive professional advisory services, including services considered to be outside of their historic area of expertise,

A. was a result of client dissatisfaction with the quality of service offered by competing legal advisory firms.
B. could unexpectedly cease and a decreasing trend could emerge.
C. has contributed to an increase in the number of lawsuits against such firms as a result of dissatisfactory service provided to clients.
D. has led to a suite of service offerings that appear to be at least somewhat desirable to some clients.
E. despite inherent risks, is generally beneficial to clients who want to find a joint venture partner.

3. The primary purpose of this passage is to

A. give examples of ways in which professional service providers have diversified their services.
C. raise questions about the legality of professional service providers offering services outside of their particular area of expertise.
D. advise clients not to use firms in emerging markets that offer a comprehensive suite of service offerings.
E. provide an overview of recent changes in the field of emerging market professional service advisory firms.

4. The primary purpose of the third paragraph is to make which of the following points?

A. Transactions in emerging markets can be considerably more complex than those in non-emerging markets.
B. A twenty-percent discount is sufficiently attractive in order for one-stop shops to effectively compete and win new clients.
C. The author of the passage has an inside source in order to obtain information about pricing policies that is not publicly available.
D. Many clients are turning to one-stop shops at an increasing rate, but this is expected to reverse when discounts are discontinued.
E. Discounts, while currently available to new clients, may not be available in the future; as such, clients should consider other factors when making decisions with regard to the long-term.

5. It can be inferred that the author believes that

A. one-stop shop advisory firms should provide potential clients with a list of statements disclosing risks associated with their services.
B. clients doing business in emerging markets may find the convenience of one-stop shop advisory firms to be attractive, but they should be aware of the risks involved in using them.
C. clients doing business in emerging markets should not use one-stop shop advisory firms under any circumstances.
D. emerging market clients doing business in non-emerging markets may find the convenience of one-stop shop advisory firms to be attractive, but they should be aware of the risks involved in using them.
E. emerging market clients doing business in non-emerging markets should not use one-stop shop advisory firms under any circumstances.

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Re: Given the scarcity of quality professional service providers  [#permalink]

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03 Apr 2015, 03:49
in question 5, choice b and d are the same.

the reading passage is hard and typical of gmat passages. the question is harder.

this passage is good because it represent truly the gmat passages. some passages from other prep companies are too easy while the questions going with them are toot hard . this situation dose not present the situation in rc section.
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Re: Given the scarcity of quality professional service providers  [#permalink]

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05 Apr 2015, 13:59
Choice B and D are different. See the highlight below:

B. clients doing business in emerging markets may find the convenience of one-stop shop advisory firms to be attractive, but they should be aware of the risks involved in using them.
D. emerging market clients doing business in non-emerging markets may find the convenience of one-stop shop advisory firms to be attractive, but they should be aware of the risks involved in using them.
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Given the scarcity of quality professional service providers  [#permalink]

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05 Apr 2015, 14:04
How to choose between B and E ?

3. The primary purpose of this passage is to

E. provide an overview of recent changes in the field of emerging market professional service advisory firms

This makes sense to me because passage does provide and overview of recent changes, which is mentioned in this line - firms are branching out from their established trade to offer more comprehensive services
Not sure..why is this wrong
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Posts: 78
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GMAT 1: 690 Q49 V34
Re: Given the scarcity of quality professional service providers  [#permalink]

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14 May 2015, 21:11
1
Randude wrote:
How to choose between B and E ?

3. The primary purpose of this passage is to

E. provide an overview of recent changes in the field of emerging market professional service advisory firms

This makes sense to me because passage does provide and overview of recent changes, which is mentioned in this line - firms are branching out from their established trade to offer more comprehensive services
Not sure..why is this wrong

Make a summary of passage, that will help reaching to correct answer, here is the summary :

para 1: Given the scarcity of QPS providers in most EM around the world, it is hardly surprising that firms are ........................

this talks about overview of recent changes in the field of emerging market...

para 2: Realizing the convenience of having all professional advisors under the same roof, some clients...............................

this talks about clients and what clients get .. than what the expected , as in (As such, many clients are quickly turning to these one-stop shops; however, in doing so..)

para 3: In addition to the enhanced convenience of one-stop shops, clients also are being attracted..............................

similarly this talks about clients and What potential risks associated with initial Discount

Now if we have to answer Q : The primary purpose of Para 1 is to ? ---> then E is correct.

but Question is Q: The primary purpose of this passage is to ? --> if you look at summary or your notes , you can see Author is giving more emphasis on potential risks & What clients are getting ....

Hope that helps
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Re: Given the scarcity of quality professional service providers  [#permalink]

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05 Jan 2018, 21:48
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Re: Given the scarcity of quality professional service providers  [#permalink]

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02 Apr 2018, 11:20
@gmatninja...question 1 explanation pleeeeaaaaseeee

Sent from my Moto G (4) using GMAT Club Forum mobile app
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Re: Given the scarcity of quality professional service providers  [#permalink]

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02 Apr 2018, 11:22
Puja priya wrote:
@gmatninja...question 1 explanation pleeeeaaaaseeee

Sent from my Moto G (4) using GMAT Club Forum mobile app
GMATNinja

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Re: Given the scarcity of quality professional service providers  [#permalink]

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05 Apr 2018, 06:52
Puja priya wrote:
Puja priya wrote:
@gmatninja...question 1 explanation pleeeeaaaaseeee

Sent from my Moto G (4) using GMAT Club Forum mobile app
GMATNinja

Sent from my Moto G (4) using GMAT Club Forum mobile app

While GMATNinja is creating awesome stuffs for us, allow me to give this a shot..

Quote:
1. Which of the following is NOT mentioned in the passage as a possible negative result of using 'one-stop' professional service providers?

A. The potential for unprofessional advice is heightened.

Quote:
Specifically, clients have reported that they received unprofessional advice, due in large part to firms not having sufficient resources dedicated to their newly offered service areas to provide a level of thorough and detailed counsel that is able to be provided by stand-alone firms focused in a specific area.

B. B. Clients may not sufficiently explore alternative available service providers.

Quote:
As such, many clients are quickly turning to these one-stop shops;

C. Accounting firms may lack sufficient expertise in working with law firms in some markets.

This is no where mentioned. In fact this is the basis for the formation of one stop shops.

D. D. Expected enhancements in communication among advisors do not come to fruition.

Quote:
Moreover, clients make the assumption that communication among advisers in different areas will be enhanced when all advisors work for the same firm; however, it has been found that such synergies typically are non-existent, as the different departments operate under separate management teams without established communication protocols among their respective teams.

E. E. Clients may incorrectly assume that initial cost-saving offerings will continue indefinitely.
Quote:
Most clients assume that these discounts will continue to be offered;
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Given the scarcity of quality professional service providers  [#permalink]

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19 Dec 2018, 07:16
Veritas Prep OFFICIAL EXPLANATION

Question no:3

The correct answer to this question is (B). The first paragraph introduces the subject -'firms are branching out from their established trade to offer more comprehensive services;' however, the remainder of the passage warns of potential pitfalls of using such service providers. The other answer choices are out of Scope and not related to the Main Point of the passage. (A) is incorrect as the passage does not focus on giving examples of ways in which advisory firms have diversified their services. (C) is incorrect as the passage does not discuss the legality of the advisory firms. (D) is incorrect as the passage does not advise against using firms; it fact, the passage mentions a positive aspect of using them, but then focuses on the potential risks of using them. (E) is incorrect as the passage generally deals with the topic of recent changes in the field of advisory firms, but the main focus is related to risks inherent in using them.
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Given the scarcity of quality professional service providers   [#permalink] 19 Dec 2018, 07:16
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