Consultant's Responsibility to the Client
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Questions and Answers

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?

<p>Implementing the decision or alternative action recommended (C)</p> Signup and view all the answers

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

<p>Implementing the engagement and rendering the report in accordance with ethical standards (D)</p> Signup and view all the answers

What does guiding the client involve?

<p>Defining the issues involved in the problem, suggesting alternatives, and recommending solutions after adequate analysis and study (D)</p> Signup and view all the answers

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

<p>To obtain data and information promptly to reduce cost and time (A)</p> Signup and view all the answers

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

<p>Avoid the consulting engagement (A)</p> 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?

<p>The impact of immediate problems on long-term goals (B)</p> Signup and view all the answers

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

<p>They involve more imponderables and assumptions (D)</p> 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?

<p>Failure to properly handle an immediate cash problem (A)</p> Signup and view all the answers

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

<p>The respect of the community and the reputation for professional integrity (D)</p> Signup and view all the answers

Which factor usually influences fee arrangements acceptable to the client?

<p>The complexity of the problem involved (A)</p> Signup and view all the answers

When does the straight or fixed fee usually apply?

<p>Whenever the scope of an engagement is clearly quantifiable (D)</p> Signup and view all the answers

What does the modified fixed fee provide for?

<p>Changes during the course of the engagement or factors for proper execution of responsibility (A)</p> Signup and view all the answers

What should be considered when determining performance fees?

<p>The complexity and importance of the problem involved (A)</p> Signup and view all the answers

What does a fixed fee arrangement rely on for estimation?

<p>Firm assumptions on data available, expertise required, and time needed (A)</p> Signup and view all the answers

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

<p>The nature of the relationship with the client (D)</p> Signup and view all the answers

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

<p>Urgency of the engagement (A)</p> Signup and view all the answers

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

<p>Performance fee (D)</p> Signup and view all the answers

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

<p>Accept it on a wholly contingent basis (B)</p> Signup and view all the answers

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

<p>Consultant's annual income (A)</p> 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?

<p>Specific time and expense arrangement (C)</p> Signup and view all the answers

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

<p>Client's gender (C)</p> Signup and view all the answers

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

<p>Commission payment (D)</p> Signup and view all the answers

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

<p>Savings effected (B)</p> Signup and view all the answers

What should the consultant never do with his fee?

<p>Share it with a broker without client's consent (D)</p> 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?

<p>Time and expense fee with a compromise on the estimated and fixed maximum fee (A)</p> Signup and view all the answers

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