Nestor and Maureen Are Partners in a Small Consulting Firm

question 33

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)After the expansion, Nestor and Maureen may be able to use expectancy theory to sell new services to their old clients.
• B)Regardless of the area into which the firm expands, the basic principles of business process management may be useful to new clients.
• C)Both after the expansion, Nestor and Maureen may be able to use expectancy theory to sell new services to their old clients and regardless of the area into which the firm expands, the basic principles of business process management may be useful to new clients are true.
• D)Neither after the expansion, Nestor and Maureen may be able to use expectancy theory to sell new services to their old clients nor regardless of the area into which the firm expands, the basic principles of business process management may be useful to new clients is true.

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Definitions:

Sustainable Competitive Advantage

A unique advantage that allows a company to outperform its competitors over a long period.

Heterogeneous

Consisting of elements or parts that are different from each other; diverse in character or content.

Procedural Fairness

Refers to the customer’s perception of the fairness of the process used to resolve complaints about service.

Zone of Tolerance

The zone of tolerance refers to the range within which customers are willing to accept variations in product or service delivery quality, influencing satisfaction and loyalty.