Consulting Foundations

Internal Quiz

Question 1 of 16

Which of these is NOT a consulting business model?

• • • • general contractor

      • project based

      • S-corporation

      • staff augmentation

S-corporation

Question 2 of 16

How should you estimate and manage your costs?

• take a swag and monitor it

• review your financials at the end of the year

• use a bottoms-up pro forma P&L

• use only external benchmarks

use a bottoms-up pro forma P&L

Question 3 of 16

Where should you market your services?

• on the cheapest marketing platform

• on every available marketing platform

• only on your website

• where your buyers are

where your buyers are

Question 4 of 16

_ sales is where the principals of the firm build relationships with clients, understand their needs, and sell services to meet those needs.

• Subcontractor

• Direct

• Commissioned

• Partnership

Direct

Question 5 of 16

Which type of contract governs your entire relationship with the client?

• • • Master Services Agreement

    • Purchase Order

    • Statement of Values

    • Task Order

Master Services Agreement

Question 6 of 16

Which of these is a challenge of “at risk” pricing models?

• regulators don’t like these arrangements

• incentives are aligned with your client

• measurement is difficult

• you can make more money

measurement is difficult

Question 7 of 16

What is true about “work made for hire” or “work product”?

• • • • it becomes your intellectual property

      • the client owns it after the engagement

      • it doesn’t need to be defined in the contract

      • you get paid a higher rate for it

the client owns it after the engagement

Question 8 of 16

Which of these is NOT a downside to responding to an RFP?

• they can take a lot of time

• they can put pressure on your rates

• they expose your true economics

• they can result in big contracts

they can result in big contracts

Question 9 of 16

What drives the number of people you need to staff on your team?

• employment law

• the amount of work to be done

• personalities

• contract provisions

the amount of work to be done

Question 10 of 16

Which of the following is NOT a good technique for resolving conflict?

• act passive-aggressively and hope the client gets the point

• incorporate a client’s ideas into the project

• reduce the client’s workload

• give the client a visible role on the project

act passive-aggressively and hope the client gets the point

Question 11 of 16

When presenting your findings, be sure to present your ideas _.

• • • • in the right format

      • after you leave the project

      • with as much data as you can find

      • like you’re the expert

in the right format

Question 12 of 16

Why should you consult an attorney when you draft a contract?

• to protect your interests and reduce risk

• because the client has an attorney

• to lower your profits which reduces your taxes

• so your contracts sound intimidating in negotiations

to protect your interests and reduce risk

Question 13 of 16

_ tracks money coming into your business and going out of it.

• Balance sheets

• Cash flow

• Financing

• Debt

Cash flow

Question 14 of 16

A _ agreement prevents your employees from pursuing your clients after they’ve left your employment.

• intellectual property

• restriction

• project

• noncompete

noncompete

Question 15 of 16

What kind of insurance protects you when your work isn’t up to standard and it causes financial damages?

• disability

• workers’ compensation

• Errors and omissions (E&O)

• general liability

Errors and omissions (E&O)

Question 16 of 16

When you hire people to support you, you have to _ work.

• generate more

• avoid

• do more

• delegate

delegate

Final Exam

Question 1 of 16

Which revenue model is one where you get paid based on the number of hours you work?

• fee-for-service

• unit pricing

• project-based

• ancillary fees

a) fee-for-service

Question 2 of 16

Which of these is a downside to staffing your team with contractors instead of employees?

• your workforce could be less stable and predictable

• you don’t have staffing flexibility to add or remove staff quickly

• you carry a large fixed cost by doing so

• you don’t have to pay employment taxes

a) your workforce could be less stable and predictable

Question 3 of 16

_ marketing is an approach where you share ideas and perspectives to interest your buyers.

• Content-based

• Interest-based

• Buyer-focused

• Digital

a) Content-based

Question 4 of 16

What is a major risk of having a few large clients?

• sales efforts are easier

• losing a big client can be very damaging

• sales cycles are shorter

• income is more stable

b) losing a big client can be very damaging

Question 5 of 16

A _ is when a client pays you a fixed fee for a time period regardless of how much or little they use your services.

• retainer

• project fee

• flat rate

• fixed rate

a) retainer

Question 6 of 16

Why is the first deal you negotiate with a client so important?

• it generates a lot of revenue

• it sets precedent for future deals

• it proves you have a real business

• it keeps your competitors away

b) it sets precedent for future deals

Question 7 of 16

When licensing your intellectual property to clients, which of these actions should you take?

• define the license fees the client needs to pay

• define whether or not they can modify your IP

• specify how they can use the IP

• all of these answers

d) all of these answers

Question 8 of 16

What are the five major phases of a consulting engagement?

• kickoff, analysis, presentation, assessment, invoicing

• proposal, kickoff, delivery, closure, archive

• contracting, proposal, delivery, feedback, payment

• selling, proposal, kickoff, delivery, report-out

b) proposal, kickoff, delivery, closure, archive

Question 9 of 16

When should you include clients as members of your team?

• only when they demand it

• when you need to save money

• when the client seems bored

• as often as possible

d) as often as possible

Question 10 of 16

The first step in a standard problem solving process is _.

• presenting recommendations

• pinning and defining the problem

• conducting deep analysis

• generating solutions

b) pinning and defining the problem

Question 11 of 16

What’s a possible risk of staying on with the client to implement the recommendation?

• your colleagues might get jealous of you

• you’ll increase the number of hours you bill the client

• implementation might not go well and you’ll be blamed

• the client might look smarter than you

c) implementation might not go well and you’ll be blamed

Question 12 of 16

Consider retaining an attorney once you’ve hired _.

• 5 employees

• an accountant

• 10 contractors

• a single employee

d) a single employee

Question 13 of 16

When using _ accounting you record the income or expense as it’s incurred.

• accrual

• economic

• cash

• algorithmic

a) accrual

Question 14 of 16

What do employees usually get that contractors don’t?

• performance appraisals

• pay

• equipment

• benefits

d) benefits

Question 15 of 16

Which of the following is a common certification you can get for your business?

• fast-growing

• profitable

• multilingual

• veteran-owned

d) veteran-owned

Question 16 of 16

Focusing too much on delivering services can cause what issue?

• micromanagement and overtime

• not spending enough time selling

• completing projects too quickly

• reduced employee morale

b) not spending enough time selling