PT1.S4.Q23 - Mr. Blatt: Expert consultants are sought after

khandelwal.43

Please someone help explain why it is C

Admin Note: Edited the title. Please use the format: "PT#.S#.Q# - brief description of question"

khandelwal.43

Why is it not D because if the expert consultant found that it did not save much, then the consultant is taking some of the risk

Mr. Blatt: Expert consultants are sought after by
management because they help
executives make better decisions. That is
why they are worth the substantial fees
they charge.
Ms. Fring: Nonsense. Expert consultants are hired
in order to enable executives to avoid
responsibility. The more the experts cost,
the more they can be blamed when things
go wrong.
Which one of the following, if it occurred, would be
the strongest evidence favoring Ms. Fring's position
over Mr. Blatt's position?
(A)
(B)
(C)
(E)
A. A company that is trying to decide whether to
move its manufacturing plant hires an
expensive expert to conduct a cost/benefit
analysis.
B. Two competing companies faced with very
similar problems adopt different solutions, one
with the help of a consultant, one without.
C. A successful firm of expert consultants seeks to
increase its volume of business by reducing its
fees, but its volume of business drops.
D. An expert consultant builds up a successful
business by charging clients a substantial
percentage of the amount an independent
assessor judges that the consultant saved the
company
E. A company follows a consultant's advice to
open two new stores, but both stores are only
marginally profitable at first.