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

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

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New post 05 Jul 2018, 03:43
2
5
00:00
A
B
C
D
E

Difficulty:

  85% (hard)

Question Stats:

46% (02:04) correct 54% (02:15) wrong based on 214 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, one with the help of a consultant, one without.

(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.

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

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New post 05 Jul 2018, 05:16
C...Very nice question

Ms. Fring is telling = More the cost more hiring so that blame can be transferred.

C is basically telling = Less cost less hiring

Hence strengthens....
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Re: Mr. Blatt: Expert consultants are sought after by management because  [#permalink]

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New post 05 Jul 2018, 13:29
IMO C.

If the consultants were hired for making better decisions, then their business should have increased when they dropped their fee. But instead their business decreased. Hence, the consultants are not valued for their help in business decisions.
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Re: Mr. Blatt: Expert consultants are sought after by management because  [#permalink]

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New post 03 Oct 2018, 11:14
I would also opt for answer choice C.

By reducing their fees, the consultants also reduce their perceived value to potential clients as per the rational provided by Mr. Fring.
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Re: Mr. Blatt: Expert consultants are sought after by management because   [#permalink] 03 Oct 2018, 11:14
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