Question

All of the following are mentioned in the passage as circumstances in which professional service firms can benefit from offering an unconditional guarantee EXCEPT:

• A. The firm is having difficulty retaining its clients of long standing.
• B. The firm is having difficulty getting business through client recommendations.
• C. The firm charges substantial fees for its services.
• D. The adverse effects of poor performance by the firm are significant for the client.

Answer 1

The correct option is A The firm is having difficulty retaining its clients of long standing.

The best answer is A.
The passage explicitly states that offering unconditional guarantees works best with first time clients, but no mention is made of the relative success of this practice with clients of long standing. The circumstances referred to in B, C and D are mentioned in the passage.