Explain Why Consultants and Gurus Might Find Themselves Encouraged to Lie

question 63

Essay

Explain why consultants and gurus might find themselves encouraged to lie or otherwise dissemble. Why are lies told by consultants harmful? What is useful feedback and content?

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Definitions:

Expected-Rate-Of-Return

The anticipated return on an investment, predicting future profit or loss.

Interest-Rate Cost-Of-Funds

The cost incurred by a financial institution to acquire the funds that it lends out to its customers, which is often influenced by prevailing market interest rates.

Marginal Cost

The rise in cost due to the production of an extra unit of a product or service.

Marginal Benefit

Marginal benefit refers to the extra benefit received from the consumption or use of an additional unit of a good or service.