MANAGEMENT CONSULTANCY - Solutions ManualCHAPTER 1 OVERVIEW OF MANAGEMENT ADVISORY SERVICES MAS BY CPAs I.. Among the primary factors that contributed to the emergence and growth of man
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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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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 D
2 C
3 C
4 D
5 B
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