GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 24 Aug 2019, 13:20

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Given the scarcity of quality professional service providers in most e

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Current Student
User avatar
P
Status: Chasing my MBB Dream!
Joined: 29 Aug 2012
Posts: 1109
Location: United States (DC)
WE: General Management (Aerospace and Defense)
GMAT ToolKit User Reviews Badge
Given the scarcity of quality professional service providers in most e  [#permalink]

Show Tags

New post Updated on: 08 Aug 2019, 08:43
4
1
Question 1
00:00
A
B
C
D
E

based on 267 sessions

61% (03:14) correct 39% (03:20) wrong

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

based on 259 sessions

72% (01:21) correct 28% (01:54) wrong

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

based on 257 sessions

55% (00:56) correct 45% (00:51) wrong

HideShow timer Statistics

Question 4
00:00
A
B
C
D
E

based on 238 sessions

94% (00:58) correct 6% (01:11) wrong

HideShow timer Statistics

Question 5
00:00
A
B
C
D
E

based on 217 sessions

88% (01:03) correct 12% (01:15) wrong

HideShow timer Statistics

New Project RC Butler 2019 - Practice 2 RC Passages Everyday
Passage # 255, Date : 08-Aug-2019
This post is a part of New Project RC Butler 2019. Click here for Details


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.
B. alert readers to potential risks associated with using 'one-stop' shopping for professional advisory needs.
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.



Difficulty Level: 600

_________________

Originally posted by Gnpth on 01 Apr 2015, 05:28.
Last edited by SajjadAhmad on 08 Aug 2019, 08:43, edited 1 time in total.
Updated.
Director
Director
avatar
S
Joined: 09 Jun 2010
Posts: 750
Re: Given the scarcity of quality professional service providers in most e  [#permalink]

Show Tags

New post 03 Apr 2015, 04:49
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.
Intern
Intern
avatar
Joined: 05 Dec 2013
Posts: 29
Reviews Badge
Re: Given the scarcity of quality professional service providers in most e  [#permalink]

Show Tags

New post 05 Apr 2015, 14:59
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.
Intern
Intern
avatar
Joined: 05 Dec 2013
Posts: 29
Reviews Badge
Re: Given the scarcity of quality professional service providers in most e  [#permalink]

Show Tags

New post 05 Apr 2015, 15:04
How to choose between B and E ?

3. The primary purpose of this passage is to

B. alert readers to potential risks associated with using 'one-stop' shopping for professional advisory needs.

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
Manager
Manager
User avatar
Joined: 18 Nov 2013
Posts: 77
Concentration: General Management, Technology
GMAT 1: 690 Q49 V34
Re: Given the scarcity of quality professional service providers in most e  [#permalink]

Show Tags

New post 14 May 2015, 22:11
1
Randude wrote:
How to choose between B and E ?

3. The primary purpose of this passage is to

B. alert readers to potential risks associated with using 'one-stop' shopping for professional advisory needs.

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
_________________
_______
- Cheers


+1 kudos if you like
Senior Manager
Senior Manager
avatar
G
Status: Countdown Begins...
Joined: 03 Jul 2016
Posts: 282
Location: India
Concentration: Technology, Strategy
Schools: IIMB
GMAT 1: 580 Q48 V22
GPA: 3.7
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge
Re: Given the scarcity of quality professional service providers in most e  [#permalink]

Show Tags

New post 05 Apr 2018, 07:52
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;
Manager
Manager
User avatar
P
Joined: 03 Mar 2018
Posts: 208
Re: Given the scarcity of quality professional service providers in most e  [#permalink]

Show Tags

New post 19 Dec 2018, 08:16
1
Veritas Prep OFFICIAL EXPLANATION

Question no:3
Correct Answer: B

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.
_________________
Please mention my name in your valuable replies.
Senior RC Moderator
User avatar
V
Joined: 02 Nov 2016
Posts: 3478
GPA: 3.39
Re: Given the scarcity of quality professional service providers in most e  [#permalink]

Show Tags

New post 08 Aug 2019, 08:44
+1 Kudos to posts containing answer explanation of all questions
_________________
For new project RC Butler 2019: Click here
New! Need for an RC strategy and practice? Click here
Patterns among those who have scored 750+(2019 Edition) Click here
For all GMAT Flashcards => Click here
Manager
Manager
User avatar
S
Joined: 23 Dec 2011
Posts: 54
CAT Tests
Re: Given the scarcity of quality professional service providers in most e  [#permalink]

Show Tags

New post 08 Aug 2019, 17:45
Can someone please explain Q2.
Senior RC Moderator
User avatar
V
Joined: 02 Nov 2016
Posts: 3478
GPA: 3.39
Re: Given the scarcity of quality professional service providers in most e  [#permalink]

Show Tags

New post 09 Aug 2019, 09:40
Please share your thoughts for question number 2.

anupam87 wrote:
Can someone please explain Q2.

_________________
For new project RC Butler 2019: Click here
New! Need for an RC strategy and practice? Click here
Patterns among those who have scored 750+(2019 Edition) Click here
For all GMAT Flashcards => Click here
Intern
Intern
avatar
B
Joined: 10 Sep 2018
Posts: 7
Re: Given the scarcity of quality professional service providers in most e  [#permalink]

Show Tags

New post 11 Aug 2019, 06:49
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.=> mentioned, Para 2 : "Specifically, clients have reported that they received unprofessional advice", hence incorrect
B. Clients may not sufficiently explore alternative available service providers.=> mentioned, Para 2 : "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. ", hence incorrect
C. Accounting firms may lack sufficient expertise in working with law firms in some markets. => correct answer
D. Expected enhancements in communication among advisors do not come to fruition.=> mentioned, Para 2 : "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" , hence incorrect
E. Clients may incorrectly assume that initial cost-saving offerings will continue indefinitely.=> mentioned, Para 3 : "Most clients assume that these discounts will continue to be offered", hence incorrect

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.=> competing legal firms are not mentioned in the passage, hence, incorrect
B. could unexpectedly cease and a decreasing trend could emerge.=> no mention of such trend in the passage, hence incorrect
C. has contributed to an increase in the number of lawsuits against such firms as a result of dissatisfactory service provided to clients. => the passage does not mention any lawsuits against such firms, hence, incorrect
D. has led to a suite of service offerings that appear to be at least somewhat desirable to some clients.=> Para 2 mentions the following :
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.
From the same, we can infer that, while such firms have failed to meet the expectations of SOME clients, those firms have also led to a suite of service offerings that appear to be at least somewhat desirable to some other clients

E. despite inherent risks, is generally beneficial to clients who want to find a joint venture partner.=> "clients who want to find a joint venture partner" is not mentioned, hence, incorrect

3. The primary purpose of this passage is to
B. alert readers to potential risks associated with using 'one-stop' shopping for professional advisory needs.
The author introduces us to the concept of such firms in Para 1
He further describes them as 'one-stop' in Para 2. However, he also mentions a number of risks associated with such firms in Para 2
In Para 3, he mentions that the discounts on total fees are not likely to continue in the future

4. The primary purpose of the third paragraph is to make which of the following points?
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.
The author states the following in the 3rd para:
1) 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.
2) As such, discounts should not necessarily be the basis of decisions with regard to long-term engagement of professional advisors.

5. It can be inferred that the author believes that
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.
The author mentions in Para 3 that
1) clients can enjoy a twenty-percent discount on total fees associated with work provided in relation to an initial transaction.
2) 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
Further, the author mentions the various risks associated with such firms in Para 2
From the same, we can infer that while the clients find the discounts offered by the 'One Stop' firms attractive, they should be aware of the risks involved in using them.
GMAT Club Bot
Re: Given the scarcity of quality professional service providers in most e   [#permalink] 11 Aug 2019, 06:49
Display posts from previous: Sort by

Given the scarcity of quality professional service providers in most e

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne