Nestor and Maureen Are Partners in a Small Consulting Firm

question 18

Multiple Choice

Nestor and Maureen are partners in a small consulting firm located in the Republic of Bufflufia; the firm has six employees. For the last five years, the firm has focused on tax planning and tax return preparation. But, Nestor and Maureen are now interested in expanding the firm's scope of services. They are considering risk management consulting, fraud examination and business valuation as potential areas to expand the firm. They are sure at least three of their six employees would put effort into at least one of those three areas, but expanding the firm's services would require additional training for everyone.Based on the short case above, which of the following statements is most true?

• A)An enterprise risk management plan will be required only if they decide to expand into risk management consulting.
• B)Nestor and Maureen need to increase their own valence.
• C)Both A and B are true.
• D)Neither A nor B is true.

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Definitions:

Innovation

A process of implementing new ideas, creating dynamic products, or improving existing services.

Deregulation

The process of removing or reducing state regulations, typically in the economic sphere, to encourage more efficient and competitive markets.

Outcomes

The results or consequences of actions, often used in the context of evaluating the impact of decisions or experiments.

Changes

The process or act of making something become different in an essential way, often leading to new directions or conditions.