Chapter 4-5

Question 1

These skills include both understanding and experience in a technical discipline - such as information technology, marketing, engineering and organizational behavior.

Answer 1

Technical skills

Question 2

These include personal attributes that make an individual amiable among people and effective in accomplishing desirable objectives through people.

Answer 2

Interpersonal Skills

Question 3

These skills involve the ability to understand and use the following approach in solving business problems:
1. Identify the cause of problems or inefficiencies
2. Identify alternative solution
3. Select the most desirable alternative
4. Implement the chosen solution

Answer 3

Consulting process skills

Question 4

Regardless of a person’s area of specialization, the following common core courses should be included in the educational program to be a consultant:

Answer 4

1. Communications
2. Mathematics and statistics
3. Computer data processing

Question 5

This refers to the consultant’s degree of mental organization and development that enables him/her to absorb and relate facts in a logical and orderly fashion and to reason inductively and deductively.

Answer 5

Intelligence or capacity for logical thinking and reasoning

Question 6

This pertains to the number of attributes, such as moral and ethical soundness; fairness; equity; ability to distinguish between right and wrong; honesty; dependability; freedom from corrupting influence or practice: and strictness ni the fulfillment of both the letter and the spirit of agreements made regardless of personal considerations.

Answer 6

Integrity

Question 7

This interpersonal skill requires that the consultant must have the ability to anticipate human reactions to differing situations; to establish and maintain friendly relations and mutual confidence with people at all levels; and to recognize and respect the rights of others.

Answer 7

Understanding ofpeople (human relations; empathy)

Question 8

This refers to the management consultant’s ability and reasoning power to arrive at a wise decision, a course of action or a conclusion, especially when only meager or confused facts are available.

Answer 8

Judgment

Question 9

This refers to the consultant’s strength of mind and character that enables him/her to encounter disagreement, difficulties, and obstructions with firmness of spirit and determination, and to consider them as challenges rather than something to be avoided or feared; the ability ot stand by one’s convictions regardless of pressure.

Answer 9

Courage

Question 10

This pertains to the consultant’s ability to view situations ni perspective and to take action needed on a calm and controlled basis without being diverted from a sound, logical and ethical course by outside pressure.

Answer 10

Psychological maturity

Question 11

This attribute requires that a consultant needs a high-energy level ot (1) support. his/her intellectual and emotional activities, (2) enable him/her to withstand pressure and frustration, and (3) avoid physical illness.

Answer 11

Physiological equilibrium

Question 12

This is one of the fundamental communication skills. This is not only a way to get information (though this is important). It is also a way to build rapport and to control the direction of a conversion.

Answer 12

Questioning

Question 13

__________ is ability to focus and direct the individuals in an organization in a way that brings the whole organization benefits. it is perhaps the most valuable commodity a seniormanager can ofer his or her organization. It draws together a variety of relationship skills - not least articulation of vision, motivation and communication - into a coherent behavioral strategy.

Answer 13

Leadership

Question 14

This phase has the purpose of fully describing the underlying problem. It begins with the initial recognition of a symptom pointing to the problem and ends with the complete description of the problem.

Answer 14

Problem definition phase

Question 15

This is described as the fact-finding and analysis phase which involves the gathering of facts needed to solve the problem and analyzing these facts in order to clarify the requirements of the best solution.

Answer 15

Identification of alternative solutions

Question 16

Also known as the solution development phase, this involves the selection ofthe optimal solution to the problem and developing a detailed plan of action. This plan of action should include the rationale for its selection; expressed in terms of benefits and advantages, the schedule ofits installation and the needed resources

Answer 16

Selection of the most desirable alternative

Question 17

This phase has the purpose of putting the detailed plan into operation and should be the least difficult to do if the previous phases have been performed well.

Answer 17

Implementation phase

Question 18

This attribute states that a management consultant must have the desire and motivation to earn and obtain full recognition for the attainment of professional status.

Answer 18

Ambition

Question 19

TRUE OR FALSE
Rapport is easy to define.

Answer 19

FALSE

Question 20

TRUE OR FALSE
Rapport is easy to define and easy to recognize.

Answer 20

FALSE

Question 21

TRUE OR FALSE
Rapport is hard to define and hard to recognize.

Answer 21

FALSE

Question 22

TRUE OR FALSE
Rapport is hard to define but easy to recognize

Answer 22

TRUE

Question 23

TRUE OR FALSE
Rapport can only be built through written communication

Answer 23

FALSE

Question 24

TRUE OR FALSE
Rapport is confined to face-to-face communication

Answer 24

FALSE

Question 25

It is a feature of all communication

Answer 25

Rapport

Question 26

TRUE OR FALSE Rapport can be built through written and verbal communications as well

Answer 26

TRUE

Question 27

TRUE OR FALSE Questioning is a way to build rapport.

Answer 27

TRUE

Question 28

TRUE OR FALSE Questioning is a way to control the direction of the conversation

Answer 28

TRUE

Question 29

TRUE OR FALSE A client is most interested in the consultant’s knowledge of a technical area

Answer 29

FALSE

Question 30

TRUE OR FALSE A client is most interested in the consultant’s ability to use their knowledge in a way which creates value for the business.

Answer 30

TRUE

Question 31

TRUE OR FALSE Converting technical ideas into plain language is NOT important in consultancy.

Answer 31

FALSE

Question 32

TRUE OR FALSE The need to negotiate is an admission that there is necessarily a conflict between the client and the consultant.

Answer 32

FALSE

Question 33

TRUE OR FALSE The need to negotiate is an admission that there is necessarily a conflict between the client and the consultant.

Answer 33

TRUE

Question 34

TRUE OR FALSE The need to negotiate is a recognition that the consultancy exercise will work best when both client and consultant have clear expectations as to what will result from the consulting exercise and what the responsibility ofboth parties wil eb ni achieving them.

Answer 34

TRUE

Question 35

TRUE OR FALSE Communication of ideas must be backed up with information.

Answer 35

TRUE

Question 36

This is a course of action specified in order to achieve a certain objective

Answer 36

A plan

Question 37

TRUE OR FALSE Even a simple plan wil demand that different people carry out a number - often a considerable number - of tasks at different times.

Answer 37

TRUE

Question 38

TRUE OR FALSE Timetabling is not needed in planning and prioritizing tasks

Answer 38

FALSE

Question 39

TRUE OR FALSE Some tasks may be performed alongside each other. Some tasks must be given priority over others if resources are to be used effectively.

Answer 39

TRUE

Question 40

TRUE OR FALSE A project in which task order and priority have been well defined will be delivered in a shorter time period and at lower cost than one where they have not.

Answer 40

TRUE

Question 41

TRUE OR FALSE A project in which task order and priority have been well defined will be delivered in a longer time period and at lower cost than one where they have not.

Answer 41

FALSE

Question 42

TRUE OR FALSE A project in which task order and priority have been well defined will be delivered in a shorter time period and at higher cost than one where they have not.

Answer 42

FALSE

Question 43

TRUE OR FALSE A project in which task order and priority have been well defined will be delivered in a longer time period and at higher cost than one where they have not.

Answer 43

FALSE

Question 44

TRUE OR FALSE All management activity demands that money be spent.

Answer 44

TRUE

Question 45

TRUE OR FALSE Profiles of expected expenditure - budgets - must be set during the project so that the resource requirements may be understood.

Answer 45

FALSE

Question 46

TRUE OR FALSE Profiles of expected expenditure - budgets - must be set before the project starts so that the resource requirements may be understood.

Answer 46

TRUE

Question 47

TRUE OR FALSE Not every member of the team can or should attempt to undertake every task. It is unlikely, given people's individual preferences, that they would wish to.

Answer 47

TRUE

Question 48

TRUE OR FALSE Generally, businesses rarely recognize good ideas instantly and pursue them without question.

Answer 48

TRUE

Question 49

The consultant must be aware that disappointment in consultancy (for both client and consultant team) results more from ________________ than from poor outcomes.

Answer 49

unclear expectations

Question 50

This is a recognition that the consultancy exercise will work best when both client and consultant have clear expectations as to what will result from the consulting exercise and what the responsibility of both parties will be in achieving them.

Answer 50

Negotiation

Question 51

These must be used to encourage people to follow them as courses of action

Answer 51

Ideas

Question 52

Conviction results if ideas are communicated in a manner that is _____________________________.

Answer 52

appropriate to the audience

Question 53

Consultancy, as a 'product', does not usually respond to a ____________

Answer 53

"hard sell" approach.

Question 54

A _____________________________ should be used as the tactic in a well-thought-through selling strategy in consultancy

Answer 54

formal selling approach

Question 55

TRUE OR FALSE Many consulting tasks (especially those of major significance) require a team effort

Answer 55

TRUE

Question 56

Critical aspects of planning include:

Answer 56

1. defining tasks 2. ordering them 3. understanding the resource implications of the task sequence

Question 57

A good decision-maker is active in:

Answer 57

auditing the information that is available to be used in a decision-making situation

Question 58

______________________ is a fundamental measure of a business' success

Answer 58

Financial performance

Question 59

Financial analysis is easiest and most rewarding when _________________________________________.

Answer 59

undertaken with the guidance of formal ratio methods

Question 60

This is the total of demand for a particular good or service

Answer 60

market

Question 61

Significant matters about the engagement should be documented in any of the three:

Answer 61

1. formal contract 2. letter of understanding 3. file memorandum

Question 62

______________________ encourages the involvement of management, helps preserve management’s role as decision-maker, and keeps management informed of progress towards the final conclusions, recommendations, and accomplishments.

Answer 62

Interim communication

Question 63

This should be made to the client upon completion of an engagement to ensure that results and recommendations are communicated. Also, this should be responsive to the objectives and scope of the engagement.

Answer 63

Final report

Question 64

This develops and maintains the capabilities that enable a professional accountant to perform competently within the professional environments

Answer 64

continuing professional development

Question 65

The following are circumstances where professional accountants are or may be required to disclose confidential information or when a disclosure may be appropriate:

Answer 65

a. Disclosure is permitted by law and is authorized by the client or the employer b. There is a professional duty or right to disclose, when not prohibited by law

Question 66

This represents the attitude, principles and approaches that have been found to contribute most to success and make for equitable and satisfactory client relationships

Answer 66

Code of Conduct for Management Consultants