Consultant's Responsibility to the Client

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What is the responsibility of the consultant towards the client?

To guide the client in defining the issues involved in the problem

To open the mind of the client about the general nature of the client’s problem

To implement the engagement and render the report in accordance with ethical standards

To know and understand the client’s business in relation to the subject of consultation (correct)

What is one of the responsibilities of the consultant in guiding the client?

To assist the client implement the decision or alternative action recommended

To open the mind of the client about the general nature of the client’s problem

To suggest alternatives and recommend solutions without adequate analysis and study

To guide the client in defining the issues involved in the problem (correct)

What does the consultant need to do in relation to real estate aspects?

Open the mind of the client about the general nature of the client’s problem

Know and understand the client’s business in relation to the subject of consultation

Render the report in accordance with ethical standards

Identify relevant real estate aspects and potential involvement of third-party specialists (correct)

What does the consultant need to assist the client with?

Implementing the decision or alternative action recommended Signup and view all the answers

What is not a responsibility of the consultant towards the client?

Implementing the engagement and rendering the report in accordance with ethical standards Signup and view all the answers

What does guiding the client involve?

Defining the issues involved in the problem, suggesting alternatives, and recommending solutions after adequate analysis and study Signup and view all the answers

What is the primary responsibility of the consultant in terms of obtaining information from the client?

To obtain data and information promptly to reduce cost and time Signup and view all the answers

What should a consultant do if the client has an ulterior motive to use their function subjectively?

Avoid the consulting engagement Signup and view all the answers

What is essential for the consultant to distinguish between when capturing the client’s immediate problems and long-term goals?

The impact of immediate problems on long-term goals Signup and view all the answers

What is a characteristic of long-range goal problems compared to short-term problems?

They involve more imponderables and assumptions Signup and view all the answers

What may trigger uncomfortable creditor actions that jeopardize ongoing projects and place in question the client’s long-term goals?

Failure to properly handle an immediate cash problem Signup and view all the answers

What distinguishes the consultant’s practice in terms of professional integrity?

The respect of the community and the reputation for professional integrity Signup and view all the answers

Which factor usually influences fee arrangements acceptable to the client?

The complexity of the problem involved Signup and view all the answers

When does the straight or fixed fee usually apply?

Whenever the scope of an engagement is clearly quantifiable Signup and view all the answers

What does the modified fixed fee provide for?

Changes during the course of the engagement or factors for proper execution of responsibility Signup and view all the answers

What should be considered when determining performance fees?

The complexity and importance of the problem involved Signup and view all the answers

What does a fixed fee arrangement rely on for estimation?

Firm assumptions on data available, expertise required, and time needed Signup and view all the answers

What is a key consideration for a modified fixed fee arrangement?

The nature of the relationship with the client Signup and view all the answers

What is one of the considerations that the consultant may base his fee on?

Urgency of the engagement Signup and view all the answers

Which method of charging is supplemental to a minimum fee and is not related to a commission payment?

Performance fee Signup and view all the answers

What must the consultant never do in relation to the engagement fee?

Accept it on a wholly contingent basis Signup and view all the answers

What factor should NOT influence the amount of the consultant's fee?

Consultant's annual income Signup and view all the answers

Which type of arrangement allows the consultant to work on a time and expense basis, sometimes with a retainer fee?

Specific time and expense arrangement Signup and view all the answers

Which of the following is NOT a factor that may influence the amount of the consultant's fee?

Client's gender Signup and view all the answers

What does the performance fee bear no relation to, especially in a sale or financing transaction?

Commission payment Signup and view all the answers

What is an example of a possible consideration for determining the consultant's fee?

Savings effected Signup and view all the answers

What should the consultant never do with his fee?

Share it with a broker without client's consent Signup and view all the answers

Which type of fee does not need further authority from the client if it does not exceed an estimated maximum?

Time and expense fee with a compromise on the estimated and fixed maximum fee Signup and view all the answers