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# Mr.Blatt: Expert consultants are sought after by management

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Mr.Blatt: Expert consultants are sought after by management  [#permalink]

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Updated on: 30 Nov 2019, 20:53
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Difficulty:

85% (hard)

Question Stats:

49% (02:14) correct 51% (02:37) wrong based on 196 sessions

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Mr.Blatt: Expert consultants are sought after by management because they help executives make better decisions. That is why they are worth the substantial fees they charge.

Ms. Fring: Nonsense. Expert consultants are hired in order to enable executives to avoid responsibility. The more the experts cost, the more they can be blamed when things go wrong.

Which one of the following, if it occurred, would be the strongest evidence favoring Ms.Fring's position over Mr. Blatt's position?

(A) A company that is trying to decide whether to move its manufacturing plant hires an expensive expert to conduct a cost/benefit analysis.

(B) Two competing companies faced with very similar problems adopt different solutions.

(C) A successful firm of expert consultants seeks to increase its volume of business by reducing its fees, but its volume of business drops.

(D) An expert consultant builds up a successful business by charging clients a substantial percentage of the amount an independent assessor judges that the consultant saved the company.

(E) A company follows a consultant's advice to open two new stores, but both stores are only marginally profitable at first.

Originally posted by anandnk on 24 Feb 2004, 12:58.
Last edited by gmat1393 on 30 Nov 2019, 20:53, edited 3 times in total.
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24 Feb 2004, 13:19
Hey Anandnk,

What is Mr. Blatt's position?
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24 Feb 2004, 18:32
Agree with Vivek on E. Only E stands out here
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24 Feb 2004, 21:45
I take E as well. Though not by logic, but rather by POE
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24 Feb 2004, 21:56
Even I could not co-relate the stem wiht the answers and picked E by POE.

Vivek.
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24 Feb 2004, 22:24
1

Question stem: "The more the experts cost, the more they can be blamed when things go wrong."

C says that consulting company reduced the charges and the business went down. This information supports the the Frings statement becuase reduced
expert cost means reduced blame on the experts. In other words, the executives have to take the blame for not hiring a good consultant.

The assumption here is that an expensive item is a good item. If it is not a
good item we can blame it on the suppliers.
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25 Feb 2004, 05:16

Question stem: "The more the experts cost, the more they can be blamed when things go wrong."

C says that consulting company reduced the charges and the business went down. This information supports the the Frings statement becuase reduced
expert cost means reduced blame on the experts. In other words, the executives have to take the blame for not hiring a good consultant.

The assumption here is that an expensive item is a good item. If it is not a
good item we can blame it on the suppliers.

I kind of hesitated on this answer choice too but here, what drops is the expert consultant's business, not the hiring firm's business. Therefore, I do not see the connection to hiring or not hiring expert consultants.
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25 Feb 2004, 12:41

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11 Apr 2016, 05:49
C is the most suitable answer for me.
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26 Nov 2019, 07:40
OA added and bumping for further discussion
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27 Nov 2019, 09:57
1
anandnk wrote:
23. Mr.Blatt: Expert consultants are sought after by management because they help executives make better decisions. That is why they are worth the substantial fees they charge.

Ms. Fring: Nonsense. Expert consultants are hired in order to enable executives to avoid responsibility. The more the experts cost, the more they can be blamed when things go wrong.

Which one of the following, if it occurred, would be the strongest evidence favoring Ms.Fring's position over Mr. Blatt's position?

(A) A company that is trying to decide whether to move its manufacturing plant hires an expensive expert to conduct a cost/benefit analysis.

(B) Two competing companies faced with very similar problems adopt different solutions.

(C) A successful firm of expert consultants seeks to increase its volume of business by reducing its fees, but its volume of business drops.

(D) An expert consultant builds up a successful business by charging clients a substantial percentage of the amount an independent assessor judges that the consultant saved the company.

(E) A company follows a consultant's advice to open two new stores, but both stores are only marginally profitable at first.

Sorry I had to edited it

To understand why Option C is the right answer we need to understand the correlation established by person#2.
The higher the fee, the higher the blame. Consequently the lower the fee, the lower the blame, the lower the interest to hire the consultant.
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01 Dec 2019, 11:34
OA:C

(A) A company that is trying to decide whether to move its manufacturing plant hires an expensive expert to conduct a cost/benefit analysis.
- strengthening blatt position
(B) Two competing companies faced with very similar problems adopt different solutions.
-irrelevant
(C) A successful firm of expert consultants seeks to increase its volume of business by reducing its fees, but its volume of business drops.
- correct, strengthen fling position
(D) An expert consultant builds up a successful business by charging clients a substantial percentage of the amount an independent assessor judges that the consultant saved the company. - strengthen blatt position why consultants are required

(E) A company follows a consultant's advice to open two new stores, but both stores are only marginally profitable at first- tells about profitability first , what about latter time, partial information, so E is out
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02 Dec 2019, 13:43
1
Ms. Fring refutes what Mr. Blatt says by pointing out that Expert Consultants aren't hired because they help to make better decisions, but because they are only hired to rid client executives of responsibilities. And a high fee means they can be blamed even more when things go wrong.

So, in case of a Successful Consultant firm that drops its fee but loses out on Business, the clients would naturally go to the expensive firms (that aren't so successful) and these firms are more likely to fail, and that would mean more blame on the consultants that are hired.

We find this scenario in Choice C.
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Re: Mr.Blatt: Expert consultants are sought after by management  [#permalink]

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04 Dec 2019, 06:31
anandnk wrote:
Mr.Blatt: Expert consultants are sought after by management because they help executives make better decisions. That is why they are worth the substantial fees they charge.

Ms. Fring: Nonsense. Expert consultants are hired in order to enable executives to avoid responsibility. The more the experts cost, the more they can be blamed when things go wrong.

Which one of the following, if it occurred, would be the strongest evidence favoring Ms.Fring's position over Mr. Blatt's position?

Mr Blatt's position - Expert consultants are hired to provide expert advice
Ms Fring's position - Expert consultants are not hired to provide expert advice, rather they are hired to push the blame on when something goes wrong. In addition to that, the charge is directly proportional to the blame.

(A) A company that is trying to decide whether to move its manufacturing plant hires an expensive expert to conduct a cost/benefit analysis.
- This suggests that the consultants are hired for theur expert opinion
- Weakens F's position

(B) Two competing companies faced with very similar problems adopt different solutions.
- Does not strengthen / weaken either persons' claims.
- In such a scenario we can also say that no consulatants were hired.
-Wrong

(C) A successful firm of expert consultants seeks to increase its volume of business by reducing its fees, but its volume of business drops.
- F says that more the consultants are paid more they can be blamed for a failure.
- In case if the consultants reduce their fees, the companies will not be able to blame a lot on the consultants. Hence, lesser number of companies decide to hire those consultants
- Correct

(D) An expert consultant builds up a successful business by charging clients a substantial percentage of the amount an independent assessor judges that the consultant saved the company.
- In negates F's position.
- This states that the opinion of the consultant in fact helped the company. As per F's position the consultant must be blamed for the companies failures.
- Wrong

(E) A company follows a consultant's advice to open two new stores, but both stores are only marginally profitable at first.
- Weakens F's position
- To support F's position, the company must endure a loss and then blame the loss on the consultant
-Wrong
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08 Dec 2019, 21:38
Many of the users are of the view that option D can be rejected because it strengthens the SPEAKER A'S position, but I dont think it is the correct reason.
Option D, like option C, speaks of increase in the business of EXPERT CONSULTANTS, but option D says that the CONSULTANTS charged a SUBSTANTIAL PERCENTAGE. How can we compare higher percentage with substantial amount.
For eg: a consultant used to charge \$100, but now he charges \$200 (100% more), but still it is not a substantial amount.
Please correct if i am wrong.
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09 Dec 2019, 05:09
deveshj21, (D) is completely irrelevant and hence out of scope for this question. We don’t care that they charge a fair value. The goal is to strengthen the idea that the more a consultant is paid, the more responsibility they take. (D) tells us nothing about this relationship.

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Mr.Blatt: Expert consultants are sought after by management   [#permalink] 09 Dec 2019, 05:09
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