Management consultancy by cabrera chapter 01 answer

MANAGEMENT CONSULTANCY - Solutions Manual

CHAPTER 1
OVERVIEW OF
MANAGEMENT ADVISORY SERVICES
(MAS) BY CPAs
I.

Questions
1. Among the primary factors that contributed to the emergence and
growth of management consultancy are:
1. Growth in size and complexity of business.
2. Difficulty in conducting and managing a business.
3. Greater competition among businesses so that new management
techniques will have to be applied.
4. Recognition of the importance of accurate and timely information
in decision-making.
5. Inability to have a complete line-up of professional management.
2. Small companies need management consultants to provide them with
professional assistance because they are usually not in a position to
hire a complete line-up of well-rounded management. Owners and
their executives are usually burdened with the responsibility of
managing the day-to-day operations of the company so that not enough
time is devoted to many staff services that are essential to the
continuous growth and success of the business.
3. The objectives of management of a business organization are:
Primary:
To maximize the return on the investors’ capital and at the same
time providing for the safety of such resources entrusted to them.
Secondary:
To be able to discharge its social and legal responsibilities towards

its employees, customers, the community and the government.
4. Refer to page 9, par(s) 3 and 4
5. Refer to page 12
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Chapter 1

Overview of Management Advisory Services

6. Refer to page 11
7. Refer to page 4, par 4
8. Refer to pages 6 and 7
9. Refer to pages 7 and 8
10. Refer to pages 10 and 11
II. Multiple Choice Questions
1.
2.
3.
4.
5.

D
C
C
D
B

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