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Question

All of the following are mentioned in the passages 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.

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B

The firm charges substantial fees for its services.

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C

The adverse effects of poor performance by the firm are significant for the client.

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D

The client is reluctant to incur risk.

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Solution

The correct option is B

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


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.


Verbal Ability

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